• Thu. Dec 7th, 2023

Siemens Energy Prioritizes Revitalization of Wind Business for Successful Turnaround


Nov 21, 2023

Siemens Energy has announced a plan to bring its struggling wind-turbine unit back to breakeven by fiscal 2026 and achieve profitability after that. The German company has also extended midterm margin targets for its core businesses.

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.

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.

The wind business will be fixed with a clearly defined action plan based on simplifying the product portfolio, optimizing footprint and operations, and strengthening processes and control, stated Chief Executive Christian Bruch. He emphasized that the turnaround of Siemens Gamesa remains the highest priority and the company now has a defined path and action plan.

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. This represents an increase from the previously targeted margins.

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