The energy technology group Siemens Energy plans to reward its shareholders following the end of several challenging years.
The company announced on Thursday, during its Capital Markets Day in the United States, that it intends to allocate up to ten billion euros to investors by 2028. This amount will be achieved through a share buyback program worth up to six billion euros, as well as dividend payments. The DAX-listed group is benefiting from rising global electricity demand thanks to its gas turbines and grid technologies. Last week, when presenting its 2025 financial results, Siemens Energy stated its intention to pay a dividend of 70 euro cents per share for the fiscal year--marking the first payout after a four-year hiatus.
MANAGEMENT FOCUSES ON ONSHORE WIND ENERGY BUSINESS
Share buybacks can push share prices higher, as the company's value is distributed among fewer outstanding shares. On Thursday, Siemens Energy's stock price temporarily surged by over eight percent, reaching its highest level since the company's spin-off from former parent Siemens in 2020.
Siemens Energy also aims to increase its profits in the coming years. Last week, management raised its medium-term targets. CEO Christian Bruch reaffirmed that the group intends to continue growing, particularly in the gas turbines, power grids, and services segments. Siemens Energy plans to invest around six billion euros in total from 2026 to 2028. The struggling onshore wind energy business will be closely scrutinized, but Bruch indicated that now is not the time for decisions. He also remained cautious regarding acquisitions despite booming business, stating that no major takeovers are currently planned, though smaller deals in grid operations or supply chains are possible.
(Reporting by Tom Käckenhoff, Christoph Steitz. Edited by Ralf Banser. For any inquiries, please contact our editorial team at Berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).
