• Wed. Dec 6th, 2023

Siemens Energy Prioritizes Revitalization of Wind Business


Nov 21, 2023

Siemens Energy has announced plans to bring its struggling wind-turbine unit back to profitability by 2026. The company has also extended its midterm margin targets for its core businesses, stating that it will fix the wind business through simplifying the product portfolio, optimizing footprint and operations, and strengthening processes and control. In addition, Siemens Gamesa is increasing production capacity at existing factories in the offshore segment to meet customer demand. The company has also identified areas of improvement 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 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 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.

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