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Recommends dividend of 0.70 euros per share

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Siemens Energy raises 2028 targets

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Frankfurt-listed shares turn positive

(Adds context in paragraph 3, shares in paragraph 5, details in

paragraphs 8-10)

By Christoph Steitz and Tom Käckenhoff

BERLIN/DUESSELDORF, Nov 13 (Reuters) -

Germany's Siemens Energy plans to pay its first

dividend in four years, it said on Thursday, also raising its

mid-term outlook following strong demand for gas turbines,

services and power transmission technology.

"This success was hard-earned and didn't come by chance,"

CEO Christian Bruch said, in a reference to years of

restructuring and cost cuts in the wake of a major quality

crisis at the group's wind turbine division.

Since then, Siemens Energy has benefited from a surge in

demand for energy equipment -- partly on the back of global AI

investments that include power-hungry data centres -- that has

helped make it Germany's sixth most valuable listed firm.

Siemens Energy proposed a dividend of 0.70 euros ($0.82) per

share for the fiscal year that ended in September, the highest

payout since the company was spun off from former parent Siemens

AG in 2020 and also beating the 0.56 euro LSEG poll.

DATA CENTRES DRIVE ENERGY DEMAND

Frankfurt-listed Siemens Energy shares turned

positive after the news and closed 2.5% higher.

As a result of a more optimistic view of the global power

equipment market, Siemens Energy now expects sales to grow by at

least 10% a year in the 2025 to 2028 period, while the profit

margin before special items will rise to 14% to 16% in 2028.

The group, which makes everything from gas and wind turbines

to electrolysers and power transmission equipment, had

previously expected average annual sales growth in the high

single-digit percentage range until 2028, with a margin of

10%-12% that year.

Siemens Energy said electricity demand and the need to

upgrade and expand power grids should continue to rise, also

driven by "the ongoing digitalization of industry and the share

of renewable energies as well as, in particular, the strong

growth of data centers".

For 2026, Siemens Energy -- which competes with GE

Vernova ( GEV ) and Mitsubishi Heavy Industries ( MHVYF ) --

expects a profit margin before special items of 9-11%, up from

6% in 2025.

Fourth-quarter sales came in at 10.4 billion euros,

driven by the firm's power grid division that had its highest

quarterly revenues to date and supported a new order backlog

record of 138 billion euros.

($1 = 0.8575 euros)