Siemens Energy core profit triples on AI power demand

Siemens Energy said its core profit tripled as rising electricity demand linked to artificial intelligence lifted orders for the German turbine-maker.

The company said profit excluding one-off items rose to 1.62 billion euros, or $1.87 billion, in the three months to the end of June, up from 497 million euros a year earlier.

Order intake, a measure of future sales, rose 8.5 percent to almost 18 billion euros for the quarter. Siemens Energy said its total backlog of work stood at 162 billion euros.

Chief executive Christian Bruch said global electricity demand, and demand for the company's products, remained strong. He said Siemens Energy delivered record orders, revenue and profitability.

Orders rose fastest in the Gas Services division, which makes gas turbines, where orders increased 62 percent.

The International Energy Agency projects that electricity use at US data centres will more than triple by 2035. It says data centres already account for six to eight percent of US electricity use.

Siemens Energy shares were up 3.7 percent in early Frankfurt trading. The shares are up about 15-fold since 2023, when the German government provided credit guarantees after quality problems at the company's wind-turbine unit.