• Wed. Dec 6th, 2023

Siemens Energy Prioritizes Revitalization of Wind Business for Successful Turnaround


Nov 21, 2023

Siemens Energy has announced a plan to return the struggling wind-turbine unit to breakeven by fiscal 2026 and achieve profitability beyond that. The company has also extended its midterm margin targets for its core businesses, stating that with a simplified product portfolio, optimized footprint and operations, and strengthened processes and control, the wind business will be back on track.

In the offshore segment, Siemens Gamesa is increasing production capacity at existing factories to meet customer demand. The company has identified deficiencies in the onshore segment and is preparing remediation action. CEO Christian Bruch emphasized that turning around Siemens Gamesa remains the highest priority, and the company now has a clear path and action plan in place.

Siemens Energy’s other three business areas, which account for 70% of the group’s revenue, are all on track to achieve or exceed their midterm targets. The company is benefiting from strong market trends such as decarbonization and major grid investment. It now expects margins of 7%-9% at its transformation of industry business, 9%-11% at grid technologies, and 10%-12% at gas services by fiscal 2026. This represents an increase from previously targeted margins. Last year, Siemens Energy aimed for margins of 6%-8% for transformation of industry, 8%-10% for grid technologies and 10%-12% for gas services by fiscal 2025.

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