Two years ago, Siemens Energy reported a €4.6 billion loss. Its wind turbine subsidiary Siemens Gamesa had massive quality issues, the stock was trading near €8, and analysts had written the company off. Today? The stock is up 66% over the last 12 months. Over 1,200% in the last three years.
The Story Behind It
Siemens Energy does three things: gas turbines for power plants, grid infrastructure (Grid Technologies), and wind turbines through subsidiary Siemens Gamesa. The problem was Gamesa — faulty turbines, exploding costs, a disaster. In fiscal year 2023, the company lost €4.6 billion. The stock fell from over €30 to under €8.
Then came the turnaround. New management, tightened quality control, costs down. In fiscal year 2025 (ended September 2025), Siemens Gamesa reported its first quarterly profit again. The entire company posted €2.36 billion in profit — a complete reversal within two years. Grid Technologies (power grids) exploded because Europe is investing massively in grid expansion. Gas Services delivered record margins of €1.6 billion.
What This Means for You
The energy transition is no longer hype — it's reality. Europe is massively expanding its power grids to transport renewable energy. Siemens Energy is one of the few European players that can deliver both wind power and grid infrastructure. Who invested €1,000 three years ago has over €13,000 today. This isn't crypto speculation — this is a DAX company with 106,000 employees.
How Pros React
The big investors are already in. BlackRock holds 7.85% of shares (67 million pieces), Siemens itself still holds 5.58%. Parent company Siemens spun off the division in 2020 because they no longer believed in it — today Siemens Energy is worth almost €75 billion on the stock market. Management raised its 2028 forecast: double-digit annual growth, margin between 14 and 16 percent. Those are numbers you usually see at tech firms, not industrial conglomerates.
First Steps for Beginners
If you're interested in energy stocks: Don't just look at the sexy tech names (Tesla, Nvidia). The really big infrastructure stories often run under the radar. Siemens Energy proved that a company can come back after near-collapse — but it takes time, and most retail investors sell in the crisis. The pros who bought at €8 when everyone panicked are now sitting on multiples. The lesson: patience and nerves beat panic.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not an indicator of future results.