First-quarter earnings soar at Siemens Energy

(Sharecast News) - Shares in Siemens Energy powered ahead on Wednesday, after quarterly earnings at the German firm surged on the back of booming demand for data centres. The energy specialist said the positive momentum it had seen in the last fiscal year had continued "seamlessly" into the first quarter.

"Favourable energy market trends remained firmly intact," it noted. "Robust demand was broad-based across regions and technologies, with strong data centre expansion."

That helped push orders up 34% to a record €17.6bn in the three months to December end, while revenues sparked 13% at €9.7bn. Net income soared to €746m, a near 200% spike on the previous year.

Christian Bruch, chief executive, said: "We have made a very strong start to the financial year. Sustained high demand in our gas turbines and grid technologies businesses is making a significant contribution to overall performance."

As at 1015 GMT, the stock had put on 5%.

Demand for gas turbines and grid equipment has spiked as construction of power-hungry data centres ramps up dramatically. Data centres are critical to artificial intelligence provision.

Revenues surged 14% in Siemens' gas services division to €3.1bn, and by 30% to €3.1bn in grid technologies. Losses also narrowed at its struggling wind business, Siemens Gamesa.

Looking to the rest of the year, Siemens reiterated guidance, arguing that "current favourable trends" were set to continue.

"The demand for electricity and the need for modernisation and expansion of electrical infrastructure could continue to increase," it said. "This development is likely to be driven by rising primary energy demand, higher levels of electrification, the ongoing digitalisation of industry and the share of renewables as well as, in particular, the strong growth in data centres."

The group is currently forecasting comparable revenue growth of between 11% and 13% in 2026, with net income expected to range from €3bn to €4bn.