Market cap multiplies tenfold in two years! Gas turbines become a necessity for data centers, Siemens Energy Q1 net profit of 746 million euros exceeds expectations

Siemens Energy Achieves Performance Leap Driven by AI Wave, Net Profit Nearly Doubles in Q1 to €746 Million This German power equipment manufacturer is benefiting from the global data center construction boom, with its gas turbines and grid equipment becoming key infrastructure supporting AI technology development.

Siemens Energy announced in its financial report on Wednesday that net profit for the first quarter ending December last year reached €746 million, nearly doubling from €252 million in the same period last year and surpassing analysts’ expectations of €732 million. This performance was mainly driven by the surge in demand for AI-driven gas turbines and grid equipment.

Meanwhile, the previously struggling wind power business also shows signs of improvement. Siemens Gamesa’s operating loss narrowed from €374 million in the same period last year to €46 million, with increased production efficiency being a key factor.

Benefiting from the AI boom, Siemens Energy’s stock price has soared more than tenfold over the past two years, reaching a market value of €130 billion, making it the sixth-largest listed company in Germany. After the earnings release, the company’s stock rose 4.3% in pre-market trading.

AI Infrastructure Demand Drives Core Business Growth

Siemens Energy CEO Christian Bruch stated, “The sustained high demand for gas turbine and grid technology businesses has made a significant contribution to overall performance.” These two sectors are core equipment for global data center construction. As AI technology develops rapidly, data centers’ demand for stable power supply has surged.

Large gas turbines can provide reliable power for data centers, while grid equipment ensures efficient transmission and distribution of electricity. These devices have become critical infrastructure supporting AI development, driving continuous growth in Siemens Energy’s orders in this field.

Siemens Gamesa’s wind power business, long troubled by quality issues, also shows early signs of improvement. The department’s operating loss in the first quarter narrowed to €46 million, a significant reduction from €374 million last year.

Christian Bruch pointed out, “There are early signs of moderate improvement in the wind power business.” Increased production efficiency has helped reduce the department’s losses, providing additional support for Siemens Energy’s overall performance.

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