FRANKFURT/DUESSELDORF: Siemens Energy on Wednesday raised its free cash flow outlook for the second time in three months, citing stronger demand for its power grid technology and gas turbines that also helped it beat third-quarter revenue estimates.

The company, which provides equipment and services to the utility sector, is recovering from a crisis at its wind turbine division that caused it to seek help from the German government last year in the form of project guarantees.

Its shares have more than doubled since the beginning of the year, making Siemens Energy, which was spun off from Siemens AG in 2020, the best performer in Germany’s blue-chip index.

“The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum,” Siemens Energy CEO Christian Bruch said in a statement.

The group said it now expects free cash flow before tax of 1 billion to 1.5 billion euros ($1.1-$1.6 billion) in 2024, from up to 1 billion previously.

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It also slightly narrowed the outlook for its struggling wind turbine division Siemens Gamesa, forecasting a loss before special items of up to 2.0 billion euros, while it previously did not rule out that the loss could exceed that level.

Peer GE Vernova lifted its outlook last month, helped by increased demand for power equipment, as markets around the world are expanding their renewable exposure and upgrading existing grid infrastructure.

Siemens Energy’s third-quarter sales rose 18.5% to 8.8 billion euros, beating the analyst consensus of 8.6 billion euros as per LSEG data.