Siemens Energy has announced a plan to turn its struggling wind-turbine unit profitable by 2026 and achieve profitability after that. The company has also extended midterm margin targets for its core businesses. The German company stated, “With a clear action plan focused on simplifying the product portfolio, optimizing footprint and operations, and strengthening processes and control, the wind business will be stabilized.”
Siemens Gamesa is increasing production capacity at its existing factories in the offshore segment to meet customer demand. The company has identified areas of improvement in the onshore segment and is taking corrective action. Christian Bruch, CEO, emphasized that the turnaround of Siemens Gamesa remains a top priority and the company now has a defined 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 meet or exceed their midterm targets. The company is benefiting from 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 the previously targeted margins. 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.