FRANKFURT/DUESSELDORF, Nov 20 – Siemens Energy announced on Thursday that it will return up to €10 billion ($11.5 billion) to shareholders by the end of 2028, capitalizing on unprecedented global demand for power infrastructure, gas turbines, and energy grid equipment. The announcement sent the company’s shares soaring to an all-time high, marking one of the strongest market reactions the energy technology firm has seen in recent years.

Major Capital Return Plan: Up to €6 Billion in Share Buybacks

Ahead of its capital markets day in Charlotte, North Carolina, Siemens Energy outlined an ambitious capital return strategy. The company plans to repurchase up to €6 billion in shares, with the remaining funds distributed through sustained dividend payments over the next three years.

The move reflects Siemens Energy’s strengthened financial footing following a surge in orders for equipment that supports the global shift toward electrification, grid expansion, and AI-fueled data centre power needs.

Shares Hit Record High on Strong Demand Outlook

Buoyed by last week’s upgraded mid-term targets and soaring demand for power grids and gas turbines, Siemens Energy’s stock rose as much as 8.4%, reaching a new record. By 12:39 GMT, the shares were still up 4%, demonstrating strong investor confidence.

Analysts at Citi noted the share buyback could help Siemens Energy close the valuation gap with U.S. rival GE Vernova, which currently trades at around 50x price-to-earnings, compared to Siemens Energy’s 30x. Much of the difference is attributed to the higher equity valuations typical in North American markets, Siemens Energy’s second-largest revenue source after Europe.

AI and Data Centre Expansion Drive Demand for Power Infrastructure

The global boom in data center construction—fueled by rapid adoption of artificial intelligence—has sharply increased demand for electrical infrastructure such as transformers, switchgear, and power grid components. Siemens Energy plans to invest €2 billion into expanding its global manufacturing network to meet this demand.

These investments will expand the company’s transformer and switchgear production capacity, reinforcing its position as a critical supplier for the energy transition, electrification projects, and the fast-growing digital economy.