Name: Surging demand for gas and grid boosts Siemens Energy | DW News
Uploaded: 2025-11-21T16:53:55.000Z
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Adverbs of degree

Yes, we have very positive market momentum, but we also have a record order backlog of 138 billion.

Adverbs of manner

In looking at our future growth and what's embedded in our outlook for our wind business, not only for 26, but

28 and beyond, we never saw or had, let's say, a dependency on the US market.

A strong year for one of the world's biggest energy infrastructure companies, Siemens Energy.

It reported profits of 1.7 billion euros for the fiscal year 2025, with growth in sectors, but

especially in its gas and grid related businesses.

Maria Ferrero is the company's Chief Financial officer and she joins me now for more on those results.

You know, we've done this interview a few times in the past and to be honest, it's often followed a bit more disappointing results for Siemens Energy.

In particular, you had a problem with your wind energy subsidiary, Siemens Gamesa, including materials prices, which were quite challenging at the time.

And yes, I'm really happy that we are well past the issues that we discussed last time.

When we look at fiscal year 25, we were able to do a number of things.

We have a very positive market momentum behind us.

So we continue to grow our order intake and hence our order backlog.

So our order intake year exceeded prior year by almost 20% as a result of the very large.

We have a record order backlog of 138 billion.

And as a result of converting that into revenue, the team did a great job and also saw 15% growth in revenue this year to 39 billion.

And of course that translated into profit.

We had 2 point, almost 2.4 billion in profit or 6% for the year for the group.

And I think we were able to capitalize on the market momentum.

We did a lot of hard work since we last spoke in terms, in terms of how we streamlined our operations, ensured that we got as efficient as possible.

And of course with respect to wind, we see a stabilization there in that last prior year or fiscal year 25 as they move their way on the road to break even in fiscal year 26.

But again, all businesses showed tremendous growth in the year and of course that translated to an excellent profit and also by the way, a very excellent cash at $4.5 billion for us.

I want to ask more about wind in just a moment, but

first, your gas and grid businesses are doing especially well as electric demand grows in all markets, including for data centers.

To what extent is Siemens Energy riding an AI wave?

I'm so pleased that you asked that question because I actually want to perhaps put a little bit of a water into the wine when it comes to the data center and what that means to us at Siemens Energy.

This is on top of the market momentum that I'm talking about.

And when we think about the electricity demands globally with respect to data centers, right now it's around 2 to 3%, and

of course they want to grow that to 4 to 6%, let's say by the end of the decade or just into the next decade.

But it is growth and we're happy to have it, but we're not dependent on it.

I think what we're seeing and what we're experiencing, especially in our gas and grid business, is how do we continue to serve the electricity demands that continue to rise across all of the sectors, not just data centers, but

And some of this is just our regular, if you'd like, business on where we see there's additional electricity demand and we either stabilize the grid, expand the grid, connect two countries, or in gas services, of course, we tend to see new power plants, for example.

But data centers is important, and I really want to ensure that.

I'm not stressing that it's not important, of course, and

that growth is going to be a very nice growth and we will participate in that growth, but

And I think it's really important for me to delineate that it's not by far, not the majority of our revenues or our order backlog.

Do you think then you're seeing that kind of hype around data centers built into your share price, which has more than doubled in fiscal year 2025?

Well, I would say it's a number of factors, and maybe data centers is one of them.

But I think the primary factor is our turnaround case as a company and the ability to really show that we can stably, profitably grow.

And I think that's fundamentally what has caused our share price to increase.

And by the way, we're very happy with that.

And of course, the data center, let's say, is fueling some of that market momentum behind.

But I wouldn't say that that's the only reason I really say that.

It's really all comprehensive as to what we've done as a company, and we're very proud of it.

And our broad portfolio by the way I shouldn't neglect to say that, and

this trend towards modernizing electric grids, generation of electricity, you see that continuing into the years ahead, I assume you're projecting even higher margins in the coming few years.

Well, and maybe I go back to what I mentioned earlier, which is our order backlog.

So we have, yes, we have very positive market momentum, but

we also have a record order backlog of 138 billion.

And this is maybe also with respect to data centers and some of the volatility you see there.

We're actually need, I say, a very long cycle, almost, you know, long project based business.

And so therefore that's why I always talk about not only us growing our backlog, which is great and it's across the board, but

it's really about looking at that backlog with respect to longevity.

So a lot of that goes into well beyond even our mid year target range, but

also in terms of its project margin and the quality of that project margin therein.

So we actually have a lot of visibility not only to this new fiscal year, fiscal year 2020, but

And that's why I would say when you look at what we are looking at with respect to our business, we do have a lot of stability due to the way our project business is embedded in our backlog.

And of course I shouldn't forget to talk about also our service because service contracts actually go beyond on average 10 to 15 years in duration.

And that's all embedded in that 138 billion.

To be clear, the service and maintenance of a lot of what you're building right now, modernized infrastructure, things like that.

I want to sort of move in a different direction.

We're in the middle of a major climate summit, COP30 right now and we continue to hear more voices warning of a growing apathy in climate policies.

I'm curious to what extent you see anything like policy apathy in terms of climate in your business and in your orders.

You of course have a very important wind side.

And I think, look, when it comes to, you know, even looking at what we do in gas, right, I mean, we want the coal to X transition to occur.

I mean that's also very much embedded in some of, you know, whether it's gas or whether it's stabilizing the grid, expanding the grid, all of these things contribute to, you know, a greener environment, a greener energy mix.

sometimes we get the question, you know, do you continue to remain committed to Your wind business.

And we very clearly, very clearly commit to the wind business in that for an energy transition to occur, you absolutely must have that wind business embed.

But also what we've said, Stephen, over and over is that transition is going to take time.

And right now I would much rather ensure that you have gas turbines installed ripping out coal, which we know has higher greenhouse gas emissions, and

ensuring that we have high efficiency gas turbines in a particular plant, for example, that's hydrogen ready.

And I think that's what makes our portfolio so special, is we have the full breadth and ensuring that whatever speed the world wants to take, and

we would love for it to accelerate into more green, clean energy sources, but

whatever speed is reasonable, let's do what makes sense and what's right now, and

I think that's what our portfolio is, is allowing us to achieve with our customers that wind energy business seemingly becoming more difficult as markets diverge in what they want from wind energy.

Siemens Energy warned last November about the incoming US administration and its stance on wind projects.

How has that come out in the books for you guys?

And of course it created some volatility there.

But let me also be clear for us at Siemens Energy, and

certainly in looking at our future growth and what's embedded in our outlook for our wind business, not only for 26, but

As such, we have a number of contracts there.

With respect to offshore, maybe I should be specific.