By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF, Feb 11 (Reuters) – Siemens Energy’s net profit nearly tripled in the first three months of its fiscal year, boosted by AI-driven demand for gas turbines and grid equipment and a narrower loss at its struggling wind turbine division.
The company’s results on Wednesday reflect the global build-out of data centres to power AI technology and efforts to improve the performance at wind turbine maker Siemens Gamesa.
Big tech firms, so-called hyperscalers, are planning to spend $600 billion on artificial intelligence in 2026, creating a surge in demand for power plants as well as the grid infrastructure to link them to data centres.
The AI boom has helped increase Siemens Energy’s stock more than ten-fold over the past two years, giving it a market value of 137 billion euros ($163 billion). The shares were up 5.2% at 0900 GMT, hitting a record high following the results.
SIEMENS GAMESA ON TRACK FOR BREAK EVEN
“Sustained high demand in our gas turbines and grid technologies businesses is making a significant contribution to overall performance,” Chief Executive Christian Bruch said.
“Also in the wind business, there are early signs of a modest improvement.”
Net profit for the quarter ending December came in at 746 million euros ($889 million), up from 252 million a year earlier, beating the 732 million forecast in an LSEG analyst poll.
“We believe that expectations were running high going into the quarter … but, once again, (Siemens Energy) surprised on the upside,” Deutsche Bank analysts wrote in a note.
Siemens Gamesa, which has been plagued by quality issues, narrowed its operating loss to 46 million euros, compared with 374 million in the same period last year, helped by improved productivity. Bruch maintained that it was expected to break even in 2026.
($1 = 0.8393 euros)
(Reporting by Christoph Steitz in Frankfurt and Tom Kaeckenhoff in Duesseldorf; Editing by Matthew Lewis, Ludwig Burger, Thomas Derpinghaus, Elaine Hardcastle)
