After German power equipment manufacturer Siemens Energy ( Siemens Energy ) announced record annual results on Wednesday, November 11th, its stock price rose by about 8%. The company stated that with artificial intelligence driving an increase in demand for power infrastructure, its backlog of orders has reached 164 billion euros, and it plans to repurchase an additional 9 billion euros of its own shares.
The company also announced more ambitious profit targets and a proposed increase in dividends, highlighting how the AI investment boom is benefiting companies beyond NVIDIA and semiconductor manufacturers. As data center operators compete to ensure reliable power supply, gas turbines, transformers, and grid equipment are becoming increasingly important.
Siemens Energy's backlog of orders amounts to 16.4 billion euros, of which 1.5 billion euros are for data centers.
According to its official financial report press release, Siemens Energy's revenue for the fiscal year 2026 was 44.2 billion euros, representing a growth of 15.5% on a comparable basis. The annual order volume reached 68.1 billion euros, driving the company's backlog to a record high of 164 billion euros.
CEO Christian Bruch stated that approximately 15 billion euros of these unfinished orders are related to data centers, accounting for about 9.1% of the total backlogged orders.
This figure indicates that power supply is becoming a key constraint for the expansion of AI. Developers can purchase thousands of NVIDIA processors, but they may still face delays of several years in obtaining the power generation capacity and grid connectivity required to run these processors.
AI The risk of power shortages has increased, driving up demand for gas turbines and power transmission equipment, which are precisely the key areas of focus for Siemens Energy's business strategy.
Anthropic's recent commitments in the field of power equipment also indicate that AI developers are increasingly locking in on power infrastructure directly, rather than relying solely on utility companies.
Siemens Energy announces a €9 billion share repurchase, with profits more than doubling
Siemens Energy reported a net profit of 4.13 billion euros for the full year, which is higher than the 1.69 billion euros in the fiscal year 2025. Its profit margin before special items increased to 12.4%, and the pre-tax free cash flow reached 8.8 billion euros.
For the fiscal year 2027, management expects revenue to grow by 14% to 16%, with a profit margin of 14% to 16%, and net profit to be approximately 5 billion euros.
The longer-term goal is even higher. Siemens Energy plans to increase the pre-profit margin on special projects to between 20% and 22% by 2030.
AI Power demand creates opportunities beyond NVIDIA
This financial report shows that investors are increasingly rewarding companies that provide physical infrastructure for the AI economy, rather than focusing solely on semiconductor manufacturers.
Although the continuously growing backlog of orders from CoreWeave indicates a strong demand for computing power, Siemens Energy provides the equipment necessary to supply electricity to these facilities.
However, rapid expansion has also brought political and financial challenges. Concerns about rising electricity prices have sparked discussions about how much of the infrastructure costs should be passed on to consumers.
At the same time, as power availability becomes an important factor in data center development, investors are also increasingly assessing the value of existing power infrastructure.
Author: Emir Abyazov
According to the information provided, Emir Abyazov serves as the editor-in-chief of Coinpaper, responsible for advancing data-driven editorial operations, content discovery guided by SEO, as well as creating crypto-related content and financial technology narratives tailored for the audience.
