Good morning, everybody. I'm Tim Proll-Gerwe.

This is our earnings call for Q2 2026 of Siemens Energy. Like most of we have slightly adjusted the format of our earnings calls.

There's not going to be a dedicated presentation by the members of the executive board, and we get started with our Q&A. CEO Christian Bruch will be answering your questions, and since these are also half-year numbers, Maria Ferraro, our CFO, is here as well, and she's happy to take your questions as well.

On the 23rd of April, we've published our preliminary figures this morning at 7:00. There were no surprises, in other words.

Here are the numbers. Siemens Energy has followed up with a good second quarter.

Despite the geopolitical tensions, we had record orders of 17.7 billion orders, achieved improvements with all main indicators. The order intake was driven by data centers.

We're talking about 154 billion euros of orders, which is another 8 billion more than in the past year. 1.6— 164 profit before special items, and net income was at 835 million euros.

The free cash flow, and this is what Maria, our CFO, is really happy about, is almost 2 billion euros. What I'm saying is this has been a strong second half-year for Siemens Energy.

On the 23rd of April, we've increased our outlook. We now expect 14 to 16% of comparable revenue growth, a profit margin before special items 10 to 12%, and a free cash flow of about 8 billion euros.

Now, this is what we want to talk with you about. If you have questions for our CEO, Christian Bruch, or CFO, Maria Ferraro, on the numbers, or any other questions really, please make use of your telephone line.

Journalists have received the number before. If you want to ask a question, hit star and 1 on your keypad.

Now, as always, this call is shown on two or transmitted on two webcasts: one in the original line and one with an English version translated by our interpreters. You can also ask written questions in the chat window.

Now, let me also point out once again, only journalists will ask questions now. Analysts can do that later in the analysts' call, and employees can do that also in their town hall meetings.

Shareholders cannot ask questions, because we often see questions in the chat window on the share price development, etc. We cannot answer those.

Now, obviously, we want to ensure that there's no feedback, and ask you to mute your line. There's also a safe harbor statement on forward-looking statements that you also see now on the webcast.

Now, with that, let's get started with our Q&A. Now, Mr.

Bruch, before we take the first question from the journalists, I would ask you one, very brief one. The Middle East conflict is increasing now in terms of tensions, and Siemens Energy has a footprint in the region, about 4,000 employees that I'm sure have had a difficult time.

Now, you did something that your colleagues on site have really appreciated: you traveled to the region to have a look at the situation with your own eyes. First question: why did you do that?

What can you report from your trip? What was your impression that you've had?

Thank you very much, and good morning, everybody. It's great you've all found the time today.

Now, on this general situation, I always wanted to see what's happening, what the security situation is on the ground, and also what the general conditions are for our colleagues in the area. Because we work there.

We have power plant footprint, but also industrial installations. With that in mind, it is important to understand what's happening.

Our field service people who work in the region are the people that we wanted to talk to. I must say, I take great pride in how our team has resolved the situation there, or is dealing with it.

Now, at the same time, we need to keep people safe quite literally. Therefore, we need to take precautions in the situation that has been unusual for all of us.

It's things like protecting them from flying debris. If anything happens, they have to be safe on the construction site, all the way to the fact that the power plants need to keep operating.

This is what everyone has appreciated. Our customers have appreciated as well.

Be it as it may, let me say once again, this is a challenging situation not only for our employees, for all people living in the area. As I myself was in a hotel, I get a mobile phone notification to proceed to a safe location.

That was an unusual situation, but I found that the way that people deal with this situation, manage the situation, is laudable. Again, it's not something we would wish for.

No one would wish for. What is fantastic, I must say, is our team has kept operations going, and that is really remarkable.

Thank you very much. Let's start with our Q&A.

Good morning. Can I follow up to what you just said, your trip to the Middle East?

Can you say a word or two about the impact on Siemens Energy's business? In the sense that high commodity risks will have a negative impact on your business, and is there any equipment or established fleet in the region affected by attacks in the region, military attacks?

Second question about Gamesa: so not yet broken even yet, is it going to happen, the break-even, in the third or the fourth quarter? What do you think?

Thank you very much. Let me talk about the Middle East once again.

If you look at the financial indicators, the impact is almost negligible. What we do see is higher transportation costs, we have higher transaction costs partly, but again, this is nothing that's significant at all.

In financial terms, no. When it comes to orders, in the past quarter, we had an order intake in several countries from that region: Oman, the Emirates, Saudi Arabia as well.

With that in mind, the business continues. There are some projects—you have seen that with transformation of industry in the oil and gas sector—that have just shifted sideways just because of the situation.

Again, I see discussions are ongoing. In other words, I do not believe that the order intake will change in the medium term.

However, we have seen that in those countries, there has been a short-term focus on keeping things going, keeping operations going, that is. As far as we are concerned, our equipment, our installations have not been affected.

We had one installation where we had falling debris. Anti-drone defense has worked really well, but still, the debris will need to fall down somewhere.

It was nearby our installations, but nothing has been damaged. What we do see, however, is that in some places, we have increased demand now because other infrastructure elements are now needed.

Now in Saudi Arabia, there's a new pipeline that they operated toward the Red Sea to export oil from there, and we're involved in that as well. With that in mind, so far, good.

In terms of Gamesa, we have always said that in the second half of the year, or towards the end of the second half of the year, that will be visible. I don't think that we're across the finish line in Q3, we need Q4 as well for that.

Thank you very much.

Good morning. A couple of questions.

First one on the U.S. tariffs and paying back or claiming back U.S.

tariffs. Mr.

Bruch, do you claim those tariffs back, because in the past fiscal year, you paid about 200 million in tariffs, or tariff damage if you will. Do you claim them back from the U.S.

government? If so, have you done it already, and to what tune?

When would you expect a payback of those prepaid tariffs? That would be the first question.

For Ferraro, one on the share buyback which you are now accelerating. How about increasing the overall volume of the share buyback?

Is that something that you're considering at the moment due to the financial performance of the company? Then an add-on question, you're saying that the Middle East crisis doesn't really have an impact on you.

Could we still get what oil price you're assuming in your models for the entire year? If you could give us an idea about that, that would be very helpful.

Thank you. Vielen Dank.

Thank you very much, Mr. Steitz.

I'll start with tariffs, and then Maria will take over. Of course, we're looking at the situation, because you need to see what's happening, and that's a normal process, because there's one thing we need to bear in mind: not all those tariffs were paid for by our customers.

What that means is we're obliged to handle the situation properly. We need to see how this develops.

The amount that we've named or mentioned was a short-term bottom-line effect. However, in our customer agreements, there are provisions on who's paying what.

With that in mind, yes, we are involved in this process right now, but we do not expect any major net effect on our bottom line, because many of those tariffs have either been passed on or were being clarified. What that means, it's rather an administrative handling of the situation rather than any special effect.

Thank you. Hello, Christoph.

Good morning, and thank you for your questions. Maybe starting with the first one on the share buyback.

Yes, we are accelerating, and maybe just to put that into context, we had a very strong first half for free cash flow, with the first quarter being just shy of 3 billion and now 2 billion in our Q2. That, as has contributed to the upgrade and increasing of our guidance to 8 billion.

As of last week, the end of last week, or currently, we're about at 1.8 billion in shares already purchased back, and hence why we said we would continue to purchase up to 1 billion of additional volume in this fiscal year. Essentially preponing, if you'd like, 1 billion from next year, because if you recall, we indicated approximately a 2 billion per annum buyback volume estimated.

At this point in time, we're going to continue to purchase as indicated, and stay tuned for if there's going to be a change in the capital allocation. That's not contemplated at this point.

We're still sticking with the 6 billion, up until 2028, and step by step, let's do this additional billion this year. With respect to the oil price, yes, of course, we're watching this, and even at around $105 per barrel, and especially in our business, we're not looking at this from a short-term perspective.

Our business is very long-term in nature, as and in the models, they account for some of that fluctuation or that, let's say, volatility. At this point in time, we don't see this as a major effect.

Of course, we're watching it closely. Should it go above $120, $130, $150, etc., then that would be something different.

Actually, just to maybe put this into perspective, in certain parts of the world where, let's say, increasing oil and gas prices are even more acutely felt, we're seeing that customers are continuing to want to buy and to proceed with business as usual per se. Just to put that into perspective.

Thank you for the questions.

Thank you very much. Let me remember, hit star and 1 if you want to ask a question.

There's one question from the chat for you, Mr. Bruch, from Sergio Venegas from El Economista in Spain: Question about Gamesa: What has been Siemens Energy's reaction to the proposal by José Entrecanales, the CEO of Acciona and the main shareholder of Nordex, regarding the idea of creating a European leader in wind turbines?

German, English, or Spanish? English, okay.

Thank you for the question. No, I'd say, I'm not commenting on speculations in the market.

This discussion around a consolidation in the wind industry is on for a long time, and that is not just a European question. I think it's a Western question which will continue to stay around, but this is just speculations, nothing to comment about it.

That was short and decisive.

Good morning. Two questions.

Data centers: order intake, how high is the share here? The second question is, what is the current state of play with regards to the turbines that have been reserved in Germany, and what's going to happen in the future?

Good morning, Mr. Höpner.

Data centers: when you talk about the gas turbines, it's approximately a share of 25% with regards to the order intake in general. Within the 20, 25% level, we try to keep the situation as it is on a long-term basis.

This also means that the large demand and the capacity utilization of the plants depends on the entire electricity development, conventional electrification. With regards to the grid plants, transformers, it's below 10%.

In the overall year, 2 billion euros in general were used for data centers within the entire grid, but we try to find the right balance, because we want to have a portfolio which is as diverse as possible with regards to the order intake. Gas power plants, we still have long-term plans.

Everything has been reserved so far, and we try to get into the discussions with the operators. We want to have a veritable share of these capacities for which we want to have a public tender, and we are discussing this in close cooperation with our customers.

I do hope that in the second half of the year, at least with regards to the governments, we will be able to cross the finish line. With regards to the order intake '27, this will be of utmost significance, but our plans are still very solid.

Thank you very much. There is one question that you already answered.

We have another question from José Ruiz: What is the percentage of new orders coming from data centers? You answered that question.

Second question is, can you quantify the evolution of pricing in the gas services division? Are you seeing cross-selling opportunities between gas services and grid technologies?

With regard to the pricing, we publish once a year every quarter four our pricing development in the different segments, and then new units particular which is relevant for gas services. This used to be, for example, in the, let's say, fiscal year '25, which was last year, around 500 basis points on the back of prior price increases.

What we are saying for 2026, it has been substantial price increases since then, but you will only see a quantification then with quarter four. We do it obviously not quarter by quarter because it could be confusing, because it is volatile, and at the end, it's important to see it overarchingly on a full year.

In the quarter four, you will see the details on it. On the cross-selling opportunities, absolutely.

That is an opportunity that is, by the way, not only related to data centers, that is really across the board, and that is not just between gas and grid technologies. We, in the last quarter, had one project where we combined wind and grid.

Also that is an opportunity, particularly if it comes to offshore wind, and these are things which we obviously try to leverage.

Good morning. I have two questions.

Concerning transformation of industry: There are wonderful figures that you've presented, but there is one particular area where the orders have declined significantly or slightly, due to the hesitation of the customers due to the situation in the Middle East. Is this a behavior which is limited in time, or is it more a structural problem, because there are sometimes difficulties with this section in transformation of industry?

Second question: During the AGM, you announced that with regards to the Mozambique LNG, you would provide or get additional information, or you that would rather try to get additional information. Have you done so, and if so, what's your conclusion?

Order intake at TI, this is limited in nature. We think that things will change rather quickly, and we also think that this will be the case with a view to the future, new developments ahead.

By basically saying transformation of industry rather has conventional process industry customers—chemical, gas, and other process-based industrial operations. Here the momentum is different compared to the conventional electrification business.

Here the situation is a bit more well balanced, but we are confident that we will have a healthy book-to-bill. Order intake with regards to the revenue situation also with a view to the future, and the postponed order intake will be realized in the near future.

With regards to Mozambique, we are still in close contact with TotalEnergies. No deliveries have taken place so far, if I remember correctly.

Now I have to look over to my colleague. He gives me a nod.

We are still in the middle of discussions, and we are trying to review the framework conditions, I cannot provide you with any news compared to the situation back at the AGM.

Thank you. There are two more questions.

This is your last chance if you want to ask a question. Hit star and 1 or use the chat.

One question in the chat comes from Michael Lund from EnergiWatch in Denmark. The first question was already answered by you, Mr.

Bruch, expect to reach break-even for Siemens Gamesa, you answered that. The second question is, what would be the main drivers to reach break-even?

We showed a couple of elements during our capital market day, and obviously it is between improving the service profitability, making sure that the quality costs get under control in the onshore, increasing productivity on the offshore factory side, and the fourth element was general cost reduction in the corporate structures. Also, if you recall, we indicated when we did take over all the minorities in Siemens Gamesa, we also indicated that we believe in synergies of around 300 million euros, which are well on track, I have to say, in terms of being realized.

We're working on all ends. The situation throughout the year, and I said it before, is a bit more challenging, because the order intake is slightly lower than we expected in wind, and this is why we obviously have to continue to work on the cost mitigation.

This is what we're doing and what the team is doing in light of this. These are more or less the four levers what we pull to achieve the break-even, and the team is doing an excellent job, I have to say.

Thanks.

Thank you so much. I have a question concerning the situation that you do not want to focus on data centers only.

What's your customer base with regards to data centers? Are these individual key accounts?

What is the regional dissemination? You also mentioned Poland in the press release.

What's the demand there? Is it limited in time or is it a long-term demand?

With regards to the data centers, you can see that quite obviously, and that's very interesting, because we have different customer groups. On the one hand, we've got the conventional project developers that establish the data centers and make them available.

Then you've got the tech companies which are involved directly in the business operations, and then, of course, you also have customers who are gas suppliers and try to turn it into electricity in order to reach an arbitrage. It's a rather broad base of customers, different customers who all pursue their own interests, of course.

What was the second question again?

Poland,

oh yes. Poland developed in a very positive way.

We were quite successful there as well. It is something that we consider to be a region which is of strategic significance for us in Europe, not only with a view to gas—and that's what you refer to—but also with regards to wind.

In the offshore wind sector, we've received a lot of important orders. Of course, we're catching up with grid as well, Poland continues to be in our focus.

Thank you very much.

The next question comes from the chat from Angela Meyer. She works for the Börsen-Zeitung.

Transformation of industry does not grow that strongly than gas turbines and grid, and the number of orders have declined. For the four different sectors transformation of industries, could you explain to us what the market developments will be and how the four sectors are doing in the market?

Hello, Mrs. Meyer.

I wouldn't say that orders have declined, but it's an industrial business operation, you see. It is not so much volatile as it used to be in the field of electricity in the past, but this book-to-bill of 2.5 or so can never be reached.

Of course, it also has become very obvious that industry such as chemicals are characterized by a great deal of reluctance. I do hope, and I'm confident, that we have a stable outlook of a healthy book-to-bill, which means 1 and above.

Now let us zoom in on the four different sectors or areas. Compression and steam: good developments can be projected.

Also with regards to compression and oil and gas will also help us make additional investments into the infrastructure. Here the high oil price is of help to us, to say it honestly.

With regards to steam, we have reached a high level of profitability, and also confident with the number of incoming orders, because new applications will be used. First, data centers will also use turbines.

That is a very good market with a view to the future, we think there are new growth opportunities. LNG is a very broad area, from navy electrification of different plants.

It's an area which in the medium term will continue to grow in double-digit numbers. That's what we said on the occasion of the capital market.

It changes from quarter to quarter, because it's a rather small segment. In general terms, I'm very positive.

What is weak is SES. These are the electrolyzers.

The factory is working hard on that, and there are still some projects which are about to be executed, but we are a far cry from the speculations or expectations that existed with regards to hydrogen. This will not change in the near future.

There will be projects here and there, and we will stick to the technology, but it's not really yet a commercial market.

I can just add to that, but do remember that five years ago, you said that up until the end of the decade, it will not be a commercial market. Therefore, you in principle was right.

Yes, but it doesn't help. It's a pity.

Being on the right side doesn't really help you.

Point taken.

Next question from the chat comes from Philip Akutu from Energate: Delivery times for gas turbines, how have they developed? How long do customers have to wait on average once they place an order?

In '25, you spoke about four years for gas turbines.

I would like to set the stage for you. I would like to repeat this once again.

Yes, this is the delivery time that still applies, but we try to become more flexible. Whether we shift things back and forth, where there is a demand for smaller turbines that we try to cover up in greater numbers, because they can be delivered much quicker.

The utilization rate is still the same. Let me explain to you that every year, with regards to gas turbines and also grid technology, which means transformers and switch units, we try to increase our capacities.

Therefore, it is to be expected that within the course of the next few years, the situation will get better. With a view to the big transformers, we have reached delivery times of 3 to 4 years.

Last week, I think it was last week, we had the ground-breaking ceremony for three new ground-breaking ceremonies for three more plants. We are running at full speed, and we're trying to increase our capacities year by year.

It will take some time before we get into the right situation, but I think in the next few years to come, we will be able to generate healthy growth and get back to normal with regards to the delivery times before the end of the decade.

Absolutely. Absolutely.

I go back to the chat window. Mikkel Durlund, something that we heard before from EnergiWatch, he has a question on Siemens Gamesa: Orders are lower than expected in offshore wind, and what are your expectations in the offshore business for the rest of the year?

He also asks, are you concerned that your growth in orders are so much lower than Vestas, and why is it so? This is probably due to the quality issues, but over to you.

This is only related to offshore. No, first of all, offshore is always a bumpy business, because an order is in the billion or billions, and then obviously, it is volatile, and you always have seen that.

In '27, we always expected as a low. There were some orders which we expected to land—sorry, '26 was we have always expected as a low, and then we said more will come in '27.

We have on top of that seen some of the orders shifting from '26 to '27. This is also what we see, for example, in Asia happening.

If you relate to comparison, I'm not commenting on competitors, but obviously, this is heavily impacted by the auction Round 7, where some specialties were in terms of the prior agreements. No, I don't see that as a concern.

I see it obviously that if you take, let's say, the current European suppliers in offshore, we can serve the total market. I think that is an important message to the customers.

I obviously am confident that we are able to secure enough orders going forward. Where I am concerned is that obviously projects which are planned are not getting to FID fast enough.

That is mainly also related—keep in mind, interest rates have gone up substantially. All the projects face now challenges which have been auctioned years ago at a lower interest rate, to face now higher interest rate, and with this, less profitability.

This is where I think the policymakers need to think through of what can they do as boundary conditions to ease investment decisions in companies who are investing into offshore wind parks. We are trying to explain to governments that's really needed, because we do need offshore wind, particularly in Europe.

Yeah.

I have to correct myself a little bit. Those were two different questions, I put them all together.

The question regarding Vestas and are we concerned, growth in order intake was not related to offshore, it's a general question.

No, obviously Vestas is larger than us in wind, and obviously we pursue a different strategy, particularly on onshore. Onshore is for me about de-risking, profitability of service business, and then let's see where we take it from there.

Obviously, this was on the back of fixing the quality matters, and this is what we're working through. No, I'm not concerned, and we see substantial interest also now with bringing the onshore products back into the market from the customer side.

In that regard, I'm not concerned.

There's another question from an journalist, Togi Thomas. He asks whether there is any chance that Siemens Gamesa will demerge as the business is pulling down the improvement of GT and GS.

There's no plans at the moment.

Okay.

I would like to know once again, because you said before that tariffs is not going to have a major net effect. Can you still contextualize what are we talking about?

Is it double-digit millions that you want to claim back? Could you just say a few more things on that?

Thank you. We said before that we paid a lower triple-figure amount in millions.

So 200 million was what we talked about before. Now everything is under review and under discussion.

What we don't know at this point is which of the funds are allocated toward a segment, what could be refunded, what could not be refunded, because the process is not as banal as it sounds. There have been different tariff regimes, tariff numbers or codes.

I would be cautious to say that, look, this is the amount that we expect. Therefore, we are saying everything and everything we're saying, in fact, of our annual guidance, etc., is not based on our belief that we will get something back.

If something comes back, well, fair enough, and that's good. It's no specific plan, and it could actually go forward until quite a while until this is all processed.

We had some outflows, and therefore we've referred to the lower triple-digit million range. Then we'll have to see whether all of this is eligible, if you can say it like that, or not.

We're right in that process. What we did do is you need to register first.

If you have an interest in clarifying that, and that's what we did.

Excellent. Now, currently there are no further questions.

With that, let's end our Q&A for the day. Thank you so much for attending, for your kind interest, and the many questions.

If you do have more questions, the press team and myself personally will be available. The analysts' call will start at 10:30 with CEO Christian Bruch and CFO Maria Ferraro.

You can dial in as well, however, you cannot ask questions anymore. You'll find that link on our website.

The next regular journalists' Q&A will be on the 5th of August, which will be the third quarter press call, also with Christian Bruch again. With that, have a great day.

Talk to you soon. Bye-bye.