Financial concepts become useful when you calculate them yourself.
This article uses real company data from Siemens Energy, Constellation, and Iberdrola.
You only need a calculator.
Reported data tells you what the company disclosed. Calculated data helps you interpret it. Assumptions show what remains unknown.
This is the practical application of the three investor guides:
- Guide A: How to Research AI Infrastructure Companies explains how to find and label the source data.
- Guide B: How to Analyze Backlog and Capacity explains how orders become delivery and cash.
- Guide C: How to Analyze Power Companies explains how contracts, regulation, and capital shape returns.
Before You Start: Use Three Labels
Write one label beside every number.
| Label | Meaning |
|---|---|
| Reported | A number taken directly from an official company document |
| Calculated | Your arithmetic using reported numbers |
| Assumed | A value chosen to build a scenario |
Guide A makes this distinction essential. It prevents an estimate from being presented as a company fact.
Example 1: Siemens Energy Grid Technologies
We begin with the backlog method from Guide B.
Siemens Energy reported the following for Grid Technologies in the second quarter of fiscal 2026:
- Orders: €6.996 billion
- Revenue: €3.067 billion
- Profit: €519 million
- Backlog: €49 billion
- Prior-year orders: €5.209 billion
These are reported values.[1]
Calculation 1: Book-to-Bill
Book-to-bill = Orders ÷ Revenue
Enter this into your calculator:
6,996 ÷ 3,067 =
The answer is:
2.28
For every €1 of revenue delivered, the business received about €2.28 of new orders during the quarter.
Demand was arriving faster than delivery.
Calculation 2: Operating Margin
519 ÷ 3,067 × 100 =
16.9%
This matches the company’s reported margin.
The calculation is simple. The interpretation needs context.
The margin was lower than the prior-year 19.9%. Strong orders did not automatically create a higher current-quarter margin.
Calculation 3: Rough Backlog Coverage
We can build a rough run-rate estimate.
First annualize the quarterly revenue:
3,067 × 4 = 12,268
Then divide backlog by annualized revenue:
49,000 ÷ 12,268 = 3.99
About 4.0 years
This is not company guidance. It is a rough calculated check.
Quarterly revenue can be seasonal. Revenue is also growing. Different backlog items have different schedules.
The number tells us only this: the backlog is very large relative to the current delivery rate.
Calculation 4: Why Growth Definitions Matter
Use the two reported order amounts:
(6,996 ÷ 5,209 − 1) × 100 = 34.3%
The company reported 41.5% comparable order growth.
Why are the numbers different?
Siemens Energy’s comparable growth excludes currency and portfolio effects. Our simple calculation uses the displayed euro amounts.
The arithmetic can be correct while the comparison basis is different.
Example 2: Constellation and a 380 MW Data Center Agreement
Now apply Guide C.
Constellation reported a 380 MW agreement to connect and serve a CyrusOne data center beside the Freestone Energy Center in Texas. It also reported an exclusive arrangement for another 380 MW phase.[2]
The 380 MW figure is reported.
The contract price is not public. Therefore, revenue must be a scenario, not a reported forecast.
Calculation 1: Annual Energy at 90% Use
A year has 8,760 hours.
Annual energy = MW × Hours × Utilization
Assume the data center uses 90% of the 380 MW across the year.
380 × 8,760 × 0.90 =
2,995,920 MWh
That is approximately:
3.0 TWh per year
Change the Utilization Assumption
| Assumed use | Annual energy |
|---|---|
| 85% | 2,829,480 MWh |
| 90% | 2,995,920 MWh |
| 95% | 3,162,360 MWh |
Calculation 2: Revenue Sensitivity
Keep the 90% use assumption.
Now test three assumed electricity prices.
| Assumed price | Calculation | Annual revenue scenario |
|---|---|---|
| $60/MWh | 2,995,920 × 60 | $179.8 million |
| $80/MWh | 2,995,920 × 80 | $239.7 million |
| $100/MWh | 2,995,920 × 100 | $299.6 million |
These are not profit estimates.
The calculation ignores:
- fuel costs
- capacity and grid charges
- contract structure
- site and connection costs
- plant maintenance
- tax and financing
The purpose is to show how a disclosed MW figure becomes an energy and revenue scenario.
Do not add the second 380 MW phase as current revenue. The company described it as an exclusive arrangement, not the same operating contract as Phase 1.
Example 3: Iberdrola’s Network Investment and Rate Base
The third example applies the regulated-utility section of Guide C.
Iberdrola’s 2025–2028 plan reported:
- Total investment: €58 billion
- Network investment: €37 billion
- 2024 regulated asset base: about €49 billion
- 2028 regulated asset base target: about €70 billion
- Expected average ROE: 9.5%
These are reported plan figures.[3]
Calculation 1: Network Share of Investment
37 ÷ 58 × 100 =
63.8%
Almost two-thirds of the plan is directed to electricity networks.
This supports a more regulated and predictable business mix.
Calculation 2: Total Rate-Base Growth
(70 ÷ 49 − 1) × 100 =
42.9%
The company presents this as roughly 40% growth. The difference comes from rounded headline figures.
Calculation 3: Four-Year Rate-Base CAGR
Turn your phone sideways to open the scientific calculator.
(70 ÷ 49)^(1 ÷ 4) − 1 =
9.3% per year
This gives the approximate annual growth rate of the regulated asset base.
Do Not Make This Shortcut
It is tempting to calculate:
€70 billion × 9.5% ROE
and call the result net profit.
That would be wrong.
Allowed ROE applies to regulated equity, not automatically to the full asset base. Debt, capital structure, taxes, depreciation, jurisdiction rules, and operating costs also matter.
A simple calculation is useful only when the financial definition is also simple.
Put the Three Examples on One Page
| Company | What the calculation shows | What it does not prove |
|---|---|---|
| Siemens Energy | Orders are arriving faster than Grid Technologies revenue | That all backlog will convert quickly or at a higher margin |
| Constellation | A 380 MW load can require about 3 TWh per year at 90% use | The actual contract price, cost, or profit |
| Iberdrola | Networks dominate the investment plan and RAB may grow about 9.3% annually | The exact future earnings per share |
Five Calculator Rules
-
Keep the units visible.
MW, MWh, euros, dollars, and percentages are not interchangeable. -
Match the time period.
Do not compare one quarter with one full year without labeling the adjustment. -
Separate percentages from percentage points.
A margin falling from 20% to 17% fell by 3 percentage points. -
Mark every assumption.
An assumed power price is not a disclosed contract price. -
End with a business question.
A calculation should lead to the next item you need to verify.
The Main Idea
You do not need a complex model to begin analyzing AI infrastructure companies.
Start with the official data. Perform one transparent calculation. State the limitation. Then ask the next question.
Facts define the starting point. Calculations reveal the relationship. Assumptions test the possible future.
Sources
- Siemens Energy Q2 FY2026 Earnings Release — Grid Technologies orders, revenue, profit, margin, and backlog.
- Constellation Q1 2026 Results — CyrusOne 380 MW agreement and Phase 2 exclusivity.
- Iberdrola Strategic Plan 2025–2028 — investment, networks, regulated asset base, and ROE targets.
This article is an educational calculation exercise, not investment advice. Scenario prices and utilization rates are assumptions, not company forecasts. Sources checked in July 2026.