November 30, 2023 11:18 am

Siemens Energy has announced plans to bring its struggling wind-turbine business back to profitability by fiscal 2026, with a focus on simplifying the product portfolio, optimizing footprint and operations, and strengthening processes and control. The German company has also extended midterm margin targets for its core businesses, with expectations of margins of 7%-9% at its transformation of industry business, 9%-11% at grid technologies, and 10%-12% at gas services by fiscal 2026.

In the offshore segment, Siemens Gamesa is increasing production capacity at existing factories to meet customer demand. The company has also identified deficiencies in the onshore segment and is preparing remediation action. Chief Executive Christian Bruch emphasized that the turnaround of Siemens Gamesa remains the highest priority and the company now has a defined path and action plan.

Siemens Energy’s other three business areas, which account for 70% of the group’s revenue, are all on track to achieve or exceed midterm targets. The company is benefiting from strong market trends such as decarbonization and major grid investment. Last year, Siemens Energy had aimed for margins of 6%-8% for transformation of industry, 8%-10% for grid technologies and 10%-12% for gas services by fiscal 2025.

Overall, Siemens Energy is making progress towards improving its financial performance through targeted actions across its businesses.

Leave a Reply