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Siemens Energy expects to make around 1 billion euros in 2025 after upgrading its outlook for the booming global electricity market.
In an ad hoc announcement released Wednesday night, producers of gas turbine and power grid equipment raised profit expectations and projected net profits of up to 100 million euros. That figure was lower than the 1.3 billion euro profits posted last year, but was expected to break almost because it was higher than previously issued guidance.
The company also raised its revenue forecast for fiscal year 2025. This ended in September and raised it from 8-10% to 13-15%.
This growth was driven by particularly strong performance in the Gas Services and Grid Technologies sector. “The growing electricity market is where there is a huge demand for gas turbines and grid switches,” said someone familiar with the company’s business. “We see a huge demand.”
In a February report, the International Energy Agency said global electricity demand would increase by around 4% per year between now and 2027. This is up from 2.5% in 2023. It said this is the fastest pace in the industry and will increase due to strong demand for electricization as part of the drive to decarnese, an increase in air conditioning and an increase in energy data centers.
Siemens Energy has been struggling with a heavy ride into the stock market this year, with stock prices rising 20% and 20% within the days of January.
First, its value was supported by President Donald Trump’s announcement of private investments of up to $500 million, funding AI infrastructure. It then plunged in as Chinese artificial intelligence startup Deepseek shocked Silicon Valley and advanced with far less computing power than its US rivals.
The company also had to tackle the aftereffects of the Siemens Gamesa crisis, the wind turbine division that emerged in 2023. The company suffered a loss of 4.6 billion euros and was forced to bail out the government’s 15 billion euros after revealing technical issues with some of its turbines. The following year, I returned for profit.
The company said Wednesday that it expects wind turbine units to enjoy positive revenue growth in 2025, but expects to suffer a loss of 1.3 billion euros before special items.
