Siemens Energy has brought approximately 30 additional units of medium-sized gas turbine manufacturing capacity online since 2025 amid record-breaking demand, executives told analysts last week during the company's fiscal third-quarter earnings call.
The company booked orders for 15 GW from its gas services division this quarter, with sales up 62% from this time last year to €10 billion ($11.6 billion), according to Maria Ferraro, the company’s chief financial officer. It shipped 6 GW of turbines during the third quarter, bringing its total gas services backlog to 69 GW, according to an earnings presentation.
With the additional capacity, Siemens Energy could deliver 15-16 GW of gas turbines this year, Christian Bruch, president and CEO of Siemens Energy, said. Ferraro said lead times across the company now run three years or more.
Siemens Energy has about 35 units of large gas turbine manufacturing capacity, with plans to add another 15 units in 2027. For medium-sized gas turbine capacity, it plans to add another 20 units on top of the 80 units it currently has, bringing its total to about 100 units by 2028, according to the presentation.
The company also plans to expand its transformer and gas-insulated switchgear manufacturing capacity by about 50% by 2030. Siemens' Grid Technologies division, which makes transformers and other products, had a €51 billion ($59 billion) order backlog as of June 30, Ferraro said.
Bruch projected the addressable market for gas turbines could reach 120 GW a year, with about half of that demand coming from the United States.
“We had seen over the last quarters a lot of capacity going into data centers and the U.S.,” Bruch said. “This led to the situation that a lot of other applications [for turbines] have pushed out decision-makings, and this is why we see Asia coming up, we see the Middle East things coming up. This supports our positive view on 2027.”
Ferraro noted that sales could dip slightly in the fourth quarter based on seasonal trends but will likely pick up again in early 2027.
She also pointed out that Siemens Gamesa, the company's wind turbine division, closed a profitable quarter for the first time since late 2022. Total orders were down year over year because of two large offshore wind orders that skewed last year's figures, she said.
“While we remain focused on the work ahead, this achievement clearly demonstrates that the turnaround measures are delivering tangible results, and break-even for the full fiscal year is firmly on track,” Bruch said.
However, Bruch noted that competition from the Chinese wind industry remains fierce.
“We need to think about how to position ourselves in a very aggressive market, onshore and offshore,” he said.
Siemens Energy and Siemens Gamesa Renewable Energy continue to advance their consolidation and rebrand under a new name, Omterra, a process that will begin later this year, Bruch said.
