Siemens Energy AG’s share price recovered on Tuesday, rising 7.53%, after it released a preview of its first quarterly results following Chinese AI chatbot maker DeepSeek’s rapid disruption of the US market that sent stocks in a tailspin this week.
The energy company’s share price had plunged 17% when markets opened on Monday, after analysts said the release of reasoning models by the chatbot maker on Apple’s app store in the US and UK had wiped billions off US tech and energy stocks.
Analyst Philip Buller at private bank Berenberg upgraded the bank’s rating for the energy company on Tuesday, saying that although DeepSeek has triggered a correction in power generation stocks, it performed strongly in the first quarter.
The energy company now expects to exceed its pre-tax free cash flow guidance for the year and plans to update its guidance at the release of its first half-year results.
It said it had a “strong start to the fiscal year” and generated “greater than expected” free cash flow before tax during the first quarter.
The company predicts exceeding its pre-tax free cash flow guidance of up to €1bn (£804m) for 2025, generating a preliminary result of almost €1.53bn for the first quarter, compared to negative cash flow of €283m a year ago.
Siemens Energy said in its preliminary results statement for the period that revenue increased 18.4%, year over year, to €8.94bn, beating analysts’ consensus.
Company-wide profit was also market-beating, at a preliminary figure of €463m, compared to a consensus of €373m, but down from the €1.88bn recorded in the same period of 2024 that included book gains from disposals.
Orders surged by 51.9% at offshore wind developer Siemens Gamesa to nearly €2.44bn, beating last year’s equivalent order book of €1.57bn and market consensus forecasts of €2.07bn.
The wind farm developer recorded preliminary revenue of nearly €2.42bn for the quarter, an 18.4% increase compared to the same period of 2024, which was above the consensus forecasts.
According to a spokesperson, it is expected to start producing recyclable wind turbine blades at the Siemens Gamesa factory in Hull this spring.
Approximately 10% of all fibre-reinforced composite waste in Europe results from wind turbine blades, and several countries in Europe have banned the use of the material in landfill.
The wind business generated a negative free cash flow result of €568m, halving the negative result of €1.15bn that it generated a year earlier.
Total order intake across Siemens Energy for the latest quarter was €13.67bn, a 10.2% drop compared to the €15.38bn in orders secured in the same period of last year, but above market consensus.
Orders rose 24.6% in its gas services business to €5bn, reaping a 5.9% turnover boost to €2.82bn.
Grid technologies orders slumped 36.5% to an order book value of €5.12bn, below market consensus, though revenue in this segment increased by nearly a quarter to €2.48bn for the period.
Siemens Energy said it expects to release its full earnings for the first quarter of 2025 on 12 February.
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