💡 Siemens Energy reports billion-dollar profit and stock growth! 🚀
German giant Siemens Energy $SMNEY had an extremely successful year, reporting a net profit of 1.3 billion euros. This is a significant turnaround after last year's losses caused by problems with wind turbines and a €15billion government bailout . The company's shares responded by rising sharply by 20 %.
🔧 Crisis on the wane
CEO Christian Bruch said Siemens Energy has achieved all its quality targets this year and has not encountered any new technical problems with its turbines. Still, he remains cautious: "We are not yet at the end of the road when it comes to resolving all quality issues. We know we still have a lot of hard work ahead of us." This confirms that the company is aiming for long-term stability, not just short-term growth.
📈 New targets and increased profit margins
In an effort to strengthen its market position and deliver greater shareholder value, Siemens Energyhas increased its medium-term targets. The profit margin target for fiscal year 2028 has moved from a minimum of 8 % to 10-12 %. The move indicates that management expects continued growth in key areas such as gas turbines, transformers and business decarbonisation technologies.
🌎 US investments and policy challenges
Siemens Energy has invested $500 million in generation capacity in the United States this year , securing a strong position in the renewable energy market. However, political uncertainty could affect some future projects, especially with the Donald Trump administration making no secret of its scepticism towards wind power. And I would be very cautious about that. "The projects that are already under construction remain secured, but for plans for 2029 and beyond, we will have to adjust,"Bruch said .
📉 Resilience and growth potential despite challenges
Deutsche Bankanalyst Gael de-Bray still sees great potential in Siemens Energy shares . Although they have risen by 60 %, Deutsche Bank recommends buying the stock further due to the company's growth outlook and its strong position in energy technology.
What is your view on the company?
The growth is quite nice, but Europe is already represented enough in my portfolio. At least I'm adding the stock to my watchlist though.
This is good news, but I don't know if I would want to invest in this company. Pretty big risk may be Trump with his approach to these companies.