Siemens Energy (ENR1n.DE): New buyback points to a returns of value acceleration

Siemens Energy announced it will commence the third tranche of its share buyback program on 24 September 2026, with a volume of up to €2bn, running until at least 31 March 2027. The tranche forms part of Siemens Energy's buyback program of up to €6 billion, scheduled to run until the end of fiscal year 2028. Including today's buyback, Siemens Energy will have returned €5bn of the €6bn earmarked out to FY2028. Overall, we view this announcement as a positive and it sets up for an update on capital allocation on the Capital Markets Day on 11 November. Our EBITDA estimates are ahead of consensus by FY2030, and we forecast a further material acceleration in cash flow. Growth is driven by: (1) higher profitability within Gas Services; (2) solid, long-duration top-line growth and higher profit margins in Grid Technologies;