AI bubble or not, we need more power - Siemens Energy CEO

Core Insights - The company Zemen's energy has experienced a surge in demand from AI data centers, leading to record quarterly revenue of nearly 10.5 billion euros in Q4 [1] - The firm has upgraded its midterm growth and profitability targets, expecting profit margins before special items to rise to 16% by 2028, up from a previous upper bound of 12% [2][10] - The company's shares listed in Frankfurt rose by nearly 2.5% following the announcement, and its main listing has more than doubled in value this year, making it the sixth largest company in Germany [2] Financial Performance - The company achieved a revenue growth of 15% in the fiscal year 2025, successfully meeting and exceeding its targets [5] - The organization has maintained double-digit margins across all business areas except for wind, where the focus has been on stabilization [5][6] Wind Business Outlook - The wind business is currently stabilizing, with efforts focused on fixing quality issues and ramping up factory output [6][7] - The company has increased output by 30% at its large offshore factory in Germany compared to the previous year, indicating successful productivity measures [7] Shareholder Returns - The company is set to announce the return of dividend payments for the first time in four years, following the lifting of a dividend ban linked to government regulations [8][9] - The company aims to return approximately 50% of its net income to shareholders [9] Market Outlook - The company anticipates continued growth in electricity demand driven by various factors, including AI, which is expected to account for 5-6% of global electricity consumption by 2030 [11][12] - The company emphasizes the importance of diversifying its customer base and applications beyond AI to mitigate market volatility [12][14] - The underlying infrastructure for electricity is deemed essential for the growth of AI and other industries, positioning the company favorably in the market [14][16]