A Look at Siemens Energy (XTRA:ENR) Valuation Following Return to Profitability and Upbeat 2026 Outlook

Siemens Energy (XTRA:ENR) shares are drawing attention after the company released its full-year 2025 results and a financial outlook for 2026. The report highlights a return to profitability and projects revenue growth of 11% to 13% next year.

See our latest analysis for Siemens Energy.

Siemens Energy’s upbeat earnings and return to profitability have sparked a fresh wave of investor interest, pushing the share price up more than 13% over the past month and contributing to a year-to-date share price return of 125%. This is part of a remarkable turnaround story, with total shareholder return reaching 150% over the past year and an increase of 676% over three years. This suggests momentum is firmly with the bulls as management signals further growth ahead.

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Given the stock’s rapid ascent and the company’s bullish outlook, the key question now is whether Siemens Energy remains attractively priced or if the market has already factored in expectations for future growth.

Most Popular Narrative: 12.7% Overvalued

At a closing price of €114.25, Siemens Energy trades well above the most widely followed narrative’s fair value estimate of €101.33, raising fresh questions about sentiment outpacing fundamentals.

The current valuation may reflect a belief in a rapid and sustained turnaround in the wind business (Siemens Gamesa), with breakeven assumed as soon as fiscal 2026. Execution risks from ongoing restructuring, lingering 4.X and 5.X product issues, and potentially slower offshore market growth could lead to continued earnings volatility and delays in restoring net margins.

Read the complete narrative.

Curious how ambitious turnaround expectations and margin recovery hopes supercharge this price? The foundation of this popular narrative involves bold multi-year earnings and profitability jumps. But the real financial levers and their logic might surprise you. Want to see what specific future numbers have been pinned to kick-start this valuation? Dive deeper for the strategy behind the sticker price.

Result: Fair Value of €101.33 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent order growth and strong energy transition trends could challenge this view. These factors may help Siemens Energy beat revenue and margin skepticism ahead.

Find out about the key risks to this Siemens Energy narrative.

Build Your Own Siemens Energy Narrative

If you want to dig deeper into the numbers or challenge the consensus view, you can take the reins and have your own narrative live in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Siemens Energy.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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