Siemens Energy Launches Roadshow and €6 Billion Buyback to Close Valuation Gap Amid Record Backlog

Siemens Energy's roadshow, €1B buyback, and Camlin deal aim to restore confidence as record orders fail to lift stock; analysts see ~25% upside.

Siemens Energy’s management is hitting the road this week in a bid to rebuild investor confidence as a yawning disconnect opens between its swelling order book and a share price that has shed roughly a fifth of its value since April. The campaign kicked off in Munich, with stops in Copenhagen, Stockholm and London to follow over the coming days. At the heart of the pitch: explaining why a record €154 billion order backlog has failed to keep the stock aloft.

To underscore its commitment, the group has simultaneously moved to support the stock with its own firepower. A €1 billion share buyback programme kicked off on 4 June, set to wrap up by the end of September. That tranche is just the starter: the board plans total repurchases of €6 billion through the end of fiscal 2027/28. Part of the buyback proceeds will cover equity-based compensation, while the rest will be used to cancel shares.

The roadshow also provides a platform for the freshly announced acquisition of the Camlin Group. The Northern Irish specialist in digital grid monitoring brings roughly 650 employees and annual revenue of more than £90 million, further expanding Siemens Energy’s margin-rich network surveillance business. The transaction is expected to close by the end of 2026. Alongside the deal, recent quarterly figures reinforce the growth narrative: order intake of €17.7 billion in the second quarter, a net profit of €835 million, and another upward revision to the full-year forecast — the company now expects approximately €4 billion in net income for fiscal 2026. Nearly 80 per cent of capacity for 2027 is already locked in.

Despite the operational momentum, the market has turned sceptical. At €156.46, the stock trades around 20 per cent below its 52-week high and has lost roughly 12 per cent over the past month. The relative strength index of 38 signals an oversold condition by technical measures. Several large investment banks, however, see material upside. JPMorgan rates the shares “Overweight” with a €225 target, Jefferies sticks at €215, Goldman Sachs has a €212 target and includes the stock on its “Conviction List”, and Deutsche Bank sees fair value at €200. Goldman’s Ajay Patel points to a specific catalyst: surging electricity demand from the build-out of AI data centres. The consensus among analysts sits around €195, with individual targets as high as €250, putting the current price at a steep discount to Street estimates.

The next major litmus test arrives on 5 August, when Siemens Energy reports third-quarter results. Investors will be watching closely to see whether the strong order momentum can be translated into margin expansion, particularly at the wind turbine unit Gamesa, which has long been a drag on profitability. If the company can demonstrate disciplined execution, the gap between its operational heft and its depressed valuation may finally begin to close.