Executives at Siemens Energy revealed during a recent conference call for the third quarter of fiscal year 2026 that, in response to record order demand, the company has added approximately 30 units of medium and large gas turbine capacity since 2025. According to Chief Financial Officer Maria Ferraro, the Gas Services division secured new orders of 15 gigawatts this quarter, with sales up 62% year-over-year to 10 billion euros (approximately $11.6 billion). The company delivered 6 gigawatts of gas turbines in the third quarter, bringing its total gas services backlog to 69 gigawatts.

Siemens Energy President and Chief Executive Officer Christian Bruch stated that with the new capacity, the company expects to deliver 15 to 16 gigawatts of gas turbines this year. Ferraro added that delivery lead times across the company's full product line have now extended to three years or more.

According to the earnings presentation materials, Siemens Energy currently has an annual manufacturing capacity of approximately 35 large gas turbines and plans to add 15 more by 2027. For medium and large gas turbines, the company plans to add 20 units on top of its existing capacity of 80, bringing total capacity to approximately 100 units by 2028.

Additionally, the company plans to expand its manufacturing capacity for transformers and gas-insulated switchgear by approximately 50% by 2030. Ferraro revealed that as of June 30, the order backlog for the company's Grid Technologies division, which primarily produces transformers and other products, had reached 51 billion euros (approximately $59 billion).

Key data at a glance

  • 69 GW: Total gas turbine order backlog, with 15 GW of new orders this quarter.
  • 30 units: New medium and large gas turbine capacity added this year (in units).
  • 28%: Year-over-year growth rate of Grid Technologies orders, with transformers contributing the most.

Market outlook and regional demand

Bruch estimates that the addressable market for gas turbines could reach 120 GW annually, with about half of the demand coming from the United States. He noted that over the past few quarters, a significant amount of capacity has flowed to data centers and the U.S. market, delaying decisions in other applications, but demand in Asia and the Middle East is recovering, which supports the market outlook for 2027.

"Over the past few quarters, we have seen a significant amount of capacity flow to data centers and the U.S.," Bruch said. "This has caused many other turbine applications to delay decisions, so we are seeing rising demand in Asia and the Middle East, which supports our positive outlook for 2027."

Ferraro cautioned that fourth-quarter sales may dip slightly due to seasonal factors, but growth is expected to resume in early 2027. She also mentioned that the wind power division, Siemens Gamesa, achieved its first quarterly profit since the end of 2022. Total orders in the quarter declined year-over-year due to the high base from two large offshore wind orders last year.

Bruch said: "While we still have work to do, this result clearly shows that our transformation measures are delivering tangible results, and we are steadily progressing toward our goal of reaching breakeven for the full fiscal year." However, he also acknowledged that competition from China's wind power industry remains intense, adding, "We need to think about how to position ourselves in such a competitive market, both onshore and offshore."

The integration and rebranding of Siemens Energy and Siemens Gamesa Renewable Energy is still underway, with the new brand name set to be Omterra. The process will begin later this year, Bruch added.