Siemens Energy: AI Data Centers Propel Record Backlog, but Profit-Taking Mutes Buyback Impact

The disconnect between Siemens Energy’s operational momentum and its share price is widening. While a €1 billion buyback programme kicked off this week and the grids business is being bulked up through the acquisition of Northern Irish specialist Camlin Group, the stock continues to drift lower. At €156.80 on Monday, the shares have shed nearly 13% over the past month and sit almost 20% below the April peak of €195.54.

Yet beneath the correction lies a different narrative. The company booked 5 gigawatts of orders from the data centre segment alone in the second quarter, a reflection of the infrastructure demands being unleashed by cloud computing and artificial intelligence. A full quarter of all Gas Services orders now stem from data centre projects. Speaking at the Datacloud Global Congress in Cannes, Siemens Energy positioned itself as a critical partner for hyperscalers, betting that data centres will consume around 4% of global electricity generation by 2030. The group’s total order backlog has swelled to a record €154 billion.

That structural tailwind is reinforced by regulatory changes in the United States. New grid standards for inverter-based resources (NERC PRC-029), due to take effect on 1 October 2026, are forcing wind, solar and battery storage operators to meet stricter stability requirements. Siemens Energy helped shape the standard and expects a corresponding lift in demand for its Grid Technologies equipment. The division’s book-to-bill ratio of 1.72 underlines the pace at which new work is outpacing revenue conversion.

Operationally, the numbers justify some of the optimism. For the 2026 financial year, management targets comparable revenue growth of 14–16% and an adjusted operating margin of 10–12%. Free cash flow before tax is seen at roughly €8 billion, with net profit around €4 billion. The strong second quarter provided a solid base: orders reached €17.7 billion, revenue hit €10.3 billion and net profit came in at €835 million. Goldman Sachs, citing the structural data centre demand trend, views the stock as anchored by long-term valuation support.

Should investors sell immediately? Or is it worth buying Siemens Energy?

The share buyback, announced weeks ago, finally began on 4 June. Siemens Energy can repurchase up to €1 billion in shares, with a maximum of 57 million shares to be acquired by 30 September. The programme is being executed across Xetra, CBOE DXE, Aquis Exchange Europe and Turquoise Europe. Shares bought back may be used for employee compensation, equity-linked programmes or cancellation. So far, however, no volumes, average prices or cash amounts for settled transactions have been disclosed — the company reports individual trades no later than the seventh trading day after execution. That gap has left the market guessing about the pace of buying, and the stock has yet to draw any visible support from the programme.

Valuation remains the stumbling block. At a price-to-earnings ratio of 36.86, the shares leave little room for disappointment, even as orders and cash flow look strong. Technically, the RSI at 38.4 is close to oversold territory, and the stock trades 6.9% below its 50-day moving average of €168.44. The longer-term picture holds up better: the 200-day average of €135.56 still sits 15.7% below the current price, confirming an intact uptrend.

Siemens Energy’s parallel acquisition of Camlin Group, a specialist in grid monitoring, analytics and digital asset technology based in Northern Ireland, complements the organic push. Camlin employs around 650 people and generates annual revenue of £90 million. The deal, which remains subject to regulatory approvals, is expected to close before the end of 2026. No financial terms were disclosed, but the move aligns with rising utility spending on real-time monitoring, predictive maintenance and fault detection.

The next major catalyst comes on 5 August with the publication of third-quarter results. Until then, the market will scrutinise the buyback updates for hard data. Only when concrete volumes and average prices emerge will it become clear whether the programme is offering the kind of tangible support that the recent profit-taking has stripped away.