Siemens Energy Profits Triple as Gas Turbine Build Slots Run Short
Quarterly earnings hit €1.62 billion as Siemens Gamesa turned its first profit since 2022, while global order books swell faster than manufacturers can expand capacity.
Siemens Energy reported on Wednesday (2026-08-05) that quarterly profit had tripled to €1.62 billion, driven by booming demand for gas-fired power equipment, with wind division Siemens Gamesa posting its first profitable quarter since 2022.7
The Gamesa recovery removes a multiyear drag on group earnings. But the sharper driver sits in gas turbines, where order momentum has pushed the whole sector into a supply-constrained position. The IEA estimated that U.S. companies placed orders for around 20 GW of gas turbine generation capacity in the first quarter of 2026 alone, a figure cited in reporting that signals how steep the current procurement wave has become.3
That demand is global. About 40% of new turbine orders in 2026 came from the U.S., according to an IEA-linked analysis, with another 35% from Europe. Together the two regions absorbed roughly three-quarters of available new capacity, leaving Asian and Middle Eastern utilities competing for the rest.3
Siemens has been filling the queue. In early July (2026-07-02), the company secured contracts for the Misfah and Duqm independent power projects in Oman, adding 2.6 GW across sites in Muscat and Duqm — a volume that would increase Oman's installed electricity capacity by around 20%. Long-term service agreements were included in both deals.4
The Taiwan commitment is larger. In late May (2026-05-27), Siemens Energy agreed to supply major equipment and long-term services for a 2,400 MW combined-cycle gas facility for Mai-Liao Power, split into two 1,200 MW units. The plant is designed to replace 1,800 MW of coal-fired generation. Once operating, it is projected to cut carbon dioxide emissions per kilowatt-hour by about 58% and generate nearly 14 billion kilowatt-hours annually, around 5% of Taiwan's total power output.1
The contracts stack commitment against a fixed manufacturing base. That pressure is visible in secondary-market pricing. In June (2026-06-02), Hallador Energy signed a $350 million purchase agreement with Energy World Corporation for around 460 MW of Siemens gas turbines, paying approximately $760 per kilowatt. Hallador budgeted a further $100 million for transport, refurbishment and installation, bringing all-in cost toward $980 per kilowatt for second-hand units. Buyers willing to pay close to a thousand dollars per kilowatt for used turbines are not doing so by preference.2
GE Vernova's late-July numbers put the sector's constraints in clearer relief. The company disclosed on Thursday (2026-07-23) that its gas turbine backlog had climbed to 116 GW, one day after (2026-07-22) reporting second-quarter orders of $24.2 billion, up 88% year-on-year and a company record, lifting its total order book to $176 billion on revenue of $11.1 billion, 22% above the year-earlier period. The company raised its full-year revenue forecast following the results.6,5
Wind remained an outlier at GE Vernova, as at most of the sector. Gas showed no equivalent weakness. One sector chief executive said publicly that a planned 30% expansion in production capacity would prove insufficient to meet demand, an acknowledgement that planned additions may not keep pace with what buyers are booking.3
The macro spending numbers support that picture. The IEA estimated that U.S. companies are on course to spend around $50 billion on coal and gas generation in 2026, which would mark the first time in decades that U.S. investment in those fuels exceeded China's, with the gap running to about $3 billion.3
NYMEX Henry Hub front-month gas was priced at $2.78 per MMBtu in Monday's session (2026-08-10), a figure that has kept gas-fired generation competitive across much of the U.S. market and done nothing to slow developer appetite for new capacity.3
For Siemens, the binding constraint ahead is whether manufacturing capacity can expand quickly enough to retain customers who have options. The secondary-market premium Hallador paid in June (2026-06-02) for refurbished Siemens turbines suggests the queue is growing and, for now, the alternatives are few.2