Siemens Energy falls as Barclays sees cycle peaking in 2026

Siemens Energy AG

07/07/2026 09:18

** Siemens Energy shares fall 5.3% after Barclays cut the German energy provider to "underweight" from "equal weight" on orders, supply/demand tightness and free cash flow peaking in 2026
** The broker sees global demand for gas turbines around 30% lower than the current run rate, expects Siemens Energy's market share to fall to around 28% by 2030 from 36%
** It says data centre-related orders could "materially" slow as power generation equipment up to 2030 was already booked in the previous 18 months, permitting and power bottlenecks constrain
** Barclays adds broad gas turbine/engine capacity additions could bring the market into oversupply with smaller producers gaining market share
** It estimates free cash flow peaking as the tailwind from net working capital eases as of next year, cash conversion falling below 1x from 2028
** "With limited upside to consensus out to 2030 and €145 billion ($166 billion) market cap pricing in indefinite peak-cycle economics, we expect the multiple to de-rate," Barclays says
** The broker raises target price to €130 per share, around 20% below current market price
** The stock has gained around 35% in value year-to-date including today's losses
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($1 = 0.8750 euros)

 (Reporting by Danny Callaghan)
 ((danny.callaghan@thomsonreuters.com))