Siemens Energy AG

Siemens Energy's last five years have been shaped by the spin-off, the Siemens Gamesa wind-turbine crisis, a balance-sheet rescue, and a sharp re-rating into a turnaround and grid-electrification story, with the stock now trading near all-time highs at 162.35.

2020–2021: Spin-off and early post-IPO phase

Siemens Energy was carved out of Siemens AG and listed in late 2020, with the equity story framed around a diversified energy-technology portfolio spanning gas turbines, grids, industrial decarbonization, and wind through Siemens Gamesa. In 2021, the stock traded in a broad range as investors tried to price the mix of cyclical gas and steam equipment, grid growth, and structurally challenged wind. The narrative gradually shifted from "pure-play energy transition" toward "complex energy conglomerate with problem child Gamesa."

2022: Gamesa squeeze and acquisition of minorities

Siemens Energy moved to acquire nearly all minorities in Siemens Gamesa in 2022, paying a premium to gain full control of the troubled wind-turbine unit while promising synergies and tighter operational control. Many investors viewed the deal as risky and potentially overpriced, planting seeds for a "value trap?" narrative as Gamesa's losses mounted while traditional grid and gas businesses continued to perform relatively well.

2023: Wind-turbine crisis and profit warning

Technical issues in Siemens Gamesa's onshore and offshore fleet—notably rotor blades and bearings—drove a sharp increase in failure rates and expected warranty and repair costs. Siemens Energy was forced to scrap its 2023 profit guidance and its profit assumptions for Gamesa. The June 2023 warning that remedial costs could exceed €1 billion triggered a one-day drop of about 34% in the shares and crystallized a harsh "Siemens Gamesa disaster and balance-sheet risk" narrative, with growing shareholder anger over the Gamesa deal and perceived due diligence failures.

2024: Loss peak, grid strength, and start of the turnaround

For fiscal 2023, Siemens Energy reported a net loss of around €4.6 billion, largely due to Gamesa, even as its grid and conventional power businesses delivered strong growth. Through fiscal 2024, management emphasized order growth, record backlog, and improving cash flow in Grid Technologies and Transformation of Industry while ring-fencing wind risk. This gradually shifted the narrative from "existential risk" toward "operational turnaround anchored by grid electrification."

Late 2024–early 2026: Re-rating and technical recovery

By the Q4 FY 2024 earnings release, Siemens Energy was guiding for 2025 comparable revenue growth of 8–10% and a profit margin before special items of 3–5%, signaling a return to profitability after the Gamesa-driven loss peak. Over the 12 months to early 2026, the share price rose more than 150% and repeatedly printed new all-time highs, reflecting a strong upward technical phase and a market narrative of "high-operating-leverage grid and energy-transition turnaround" rather than a wind-turbine crisis stock.

Chart phases and investor narrative over five years

The first phase, from the 2020 listing through 2022, was characterized by wide, somewhat range-bound trading as the market digested the spin-off and later the Gamesa buyout, with sentiment oscillating between "energy-transition growth platform" and "structurally messy conglomerate."

The second phase, spanning 2023 into early 2024, was a major downtrend followed by base-building as profit warnings and large Gamesa losses drove capitulation. The stock became a perceived "distressed value and special situation" with heavy focus on warranties, covenants, and potential support mechanisms.

The most recent phase, from late 2024 to early 2026, has been a strong, persistent uptrend with breakouts to successive all-time highs and very large 12-month percentage gains. Improving guidance and strong grid and industrial segments have repositioned the equity as a "leveraged grid and electrification turnaround," attracting momentum and quality-growth investors back into the name at current levels.