Market value increased tenfold in two years! Gas turbines have become essential for data centers, Siemens Energy's Q1 net profit of 746 million euros exceeded expectations.

Market value increased tenfold in two years! Gas turbines have become essential for data centers, Siemens Energy's Q1 net profit of 746 million euros exceeded expectations.

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Siemens Energy achieves a leap in performance driven by the wave of AI, with net profit in the first fiscal quarter nearly tripling year-on-year to 746 million euros. The German power equipment manufacturer is benefiting from the global boom in data center construction, as its gas turbines and grid equipment become key infrastructure supporting the development of AI technology.

Siemens Energy’s financial report released on Wednesday shows that net profit for the first fiscal quarter ending last December reached 746 million euros, nearly triple the 252 million euros of the same period last year, exceeding analysts’ expectations of 732 million euros. This performance is mainly attributed to surging demand for AI-driven gas turbines and grid equipment.

Meanwhile, the previously troubled wind power business is also showing signs of improvement. The operating loss of Siemens Gamesa narrowed from 374 million euros in the same period last year to 46 million euros, with increased production efficiency becoming a key factor.

Benefiting from the AI boom, Siemens Energy’s share price has soared more than tenfold over the past two years, reaching a market value of 130 billion euros, becoming the sixth largest listed company in Germany. After the financial report was released, the company’s stock rose 4.3% in pre-market trading.

AI Infrastructure Demand Drives Core Business Growth

Siemens Energy CEO Christian Bruch said: "The sustained high demand for gas turbine and grid technology business made a significant contribution to overall performance." These two businesses are the core equipment for global data center construction. With the rapid development of AI technology, data centers’ demand for stable power supply is rising sharply.

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

The Siemens Gamesa wind power business, long plagued by quality issues, is also showing signs of improvement. The department's operating loss for the first fiscal quarter narrowed to 46 million euros, a significant reduction from 374 million euros in the same period last year.

Christian Bruch pointed out: "The wind power business has also shown early signs of moderate improvement." Increased production efficiency helped the department reduce losses, providing additional support to the overall performance of Siemens Energy.

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