Siemens to buy back 6 billion euros of shares against tough backdrop

[MUNICH] Siemens will repurchase as much as 6 billion euros (S$8.9 billion) of shares after orders across the company’s key divisions climbed against a demanding environment. 

The buyback will extend over a period of up to five years, Siemens said on Wednesday (May 13). The move suggests the German engineering company is confident in its cash generation even as it pointed to a “very demanding” geopolitical backdrop. 

Orders rose 11 per cent during the second quarter, led by demand for software and smart building infrastructure, while the company’s profit declined, slightly missing expectations. 

Germany’s most valuable firm, which makes everything from trains to factory software and controls, has been pushing further into automation and artificial intelligence for the shop floor.

The Munich-based firm, which partners with the likes of Nvidia Corp introduced an agentic AI capable of independently writing code for machines at the Hanover trade fair in April.

Orders related to data centres grew by a triple digit amount, Siemens said on Wednesday. The company left its overall outlook unchanged, while raising its forecast for revenue and profit margin for the digital industries division that makes factory automation software. Its smart infrastructure division raised expectations for revenue, while the company cut the revenue outlook for its mobility unit, citing US tariffs.

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Under chief executive officer Roland Busch, the firm has continued its push into software through the acquisitions of Dotmatics and Altair for a combined US$15 billion, while also divesting businesses such as Siemens Energy and Siemens Healthineers.

Last month, the company said it would let shareholders vote on the sale of its remaining stake in the medical equipment maker – where it still holds a majority – at the next annual general meeting in February 2027. BLOOMBERG