Siemens Energy shares rose 3.7% in early Frankfurt trading and have gained around 15-fold since 2023. (EPA Images pic)
FRANKFURT: German turbine-maker Siemens Energy said today that its core profit had tripled as the company gains from surging electricity demand driven by the AI boom.
Excluding one-offs such as last year’s sale of a business in India, Siemens Energy’s profit surged to €1.62 billion (US$1.87 billion) in the three months to end-June, up from €497 million in the period last year.
Order intake – a measure of future sales – rose 8.5% to almost €18 billion for the quarter, the company said, leaving it with a total backlog of work worth €162 billion.
“Global demand for electricity – and consequently for our products – remained strong,” chief executive Christian Bruch said in a statement. “We delivered record orders, revenue, and profitability,” Bruch said.
Electricity consumption at US data centres is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for 6% to 8% of US electricity use.
The massive build-out has boosted suppliers like Siemens Energy as well as German semiconductor-maker Infineon, which announced alongside its own results Wednesday the signature of contracts worth billions of euros with data centre customers.
Order growth was highest at Siemens Energy’s Gas Services division, which makes the gas turbines, where orders jumped 62%.
Siemens Energy shares were up 3.7% in early Frankfurt trading and are up around 15-fold since 2023, when the German government had to step in with credit guarantees after quality problems at the company’s wind-turbine unit.