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Siemens Energy experienced a 4.8% decline over the last quarter, reflecting potential market reactions to M&A discussions concerning its Siemens Gamesa Renewable Power unit and recent earnings with lower net income compared to the previous year. The broader market downturn, fueled by global trade tensions and tariff announcements, also influenced share performance. As indexes like the S&P 500 and Nasdaq entered correction territory, Siemens' strategic pursuit of divestments to streamline costs amid rising expenditures and reliance on government support might have coincided with these external pressures, contributing overall to the challenging period for the company’s stock.
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Siemens Energy (XTRA:ENR)'s stock showcased an impressive total return of 179.19% over the past year, outperforming both the German market's 1.8% and the German Electrical industry's 96.2% returns. This growth was supported by significant events, such as the Q1 2025 earnings report revealing sales of €8.94 billion, an increase from €7.65 billion year-on-year despite reduced net income. This was complemented by a forecast of 8%-10% revenue growth for FY2025.
In November 2024, discussions began for Siemens Gamesa's Indian assets acquisition by TPG Inc., potentially facilitating streamlined operations. Furthermore, Siemens Energy's partnership with MT Hojgaard Danmark on a large Danish grid expansion project is projected to generate at least DKK 0.65 billion over eight years. These developments, along with the company's strategic focus on offshore wind and technological investments, have contributed to its robust market performance over the past year.
Take a closer look at Siemens Energy's potential here in our financial health report.
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.