Siemens Energy AG

Q3 momentum: revenue/profitability up strongly; guidance reaffirmed - Siemens Energy (standalone brand prep using Omterra name for Siemens Energy & Siemens Gamesa) reported EUR 17.9bn revenue and higher order intake (per operator summary). - Profit before special items was triple YoY; EBIT margin before SI: 14.2% in Q3 (operator summary). - Guidance not changed: management remains confident, citing strong first 3 quarters and expecting seasonality in profits; they expect no “collapse” but acknowledged quarter-to-quarter fluctuation. - Cash flow guidance was not explicitly revised; CFO-side detail referenced by CEO: EUR 7.2bn free cash flow after 9 months vs full-year plan ~EUR 8bn, implying limited remaining cash generation needed in Q4.

Wind (Siemens Gamesa) improving—but still burning cash; breakeven timeline reaffirmed - Wind turned positive for the first time in ~14–15 quarters (operator summary), but CEO emphasized “tough work ahead” to turn it into a highly profitable business. - Losses shrinking but not gone: management said the total of first 3 quarters is a small double-digit loss for wind (CEO). - Cash burn remains material: Q3 free cash flow was minus EUR 518m; over 9 months minus EUR 1.7bn, and CEO said part of the year’s cash pattern is tied to timing of CapEx/project milestones (not a full restructuring narrative yet). - Cash breakeven target reiterated: 2028 (called out explicitly in Q&A as “Capital Market Day 2028” plan), and CEO said it’s influenced by order intake and execution.

Middle East demand: strong tailwind; quantified impact; conflict not seen as damaging the core order flow - Management estimates Middle East drove ~30% of gigawatt volume in the quarter for large projects (CEO “rough estimate”). - Middle East demand remains supported by a push toward resilient energy structures; CEO stated the conflict has not changed their view—“quite on the contrary” due to resilience-related investments. - Windfall optimization is rejected: CEO said they’re not squeezing customers; reservation mechanisms are treated as down payments that lapse if turbines aren’t purchased, emphasizing cash/balance-sheet discipline.