Siemens Energy vows to fix wind energy business, gears up for offshore wind growth 

At a Capital Markets Day in Hamburg on 21 November 2023, Siemens Energy provided a strategic outlook to analysts and investors, a key part of which is to “fix the wind business.”

Siemens Energy president and chief executive Christian Bruch said the company “is achieving consistent and impressive results in 70% of our businesses.” 

He went on to say, “The turnaround of Siemens Gamesa remains our highest priority, and we now have a defined path and action plan to reach break-even for the wind business in fiscal year 2026 and to return to profitability thereafter.”

Siemens Energy chief financial officer Maria Ferraro emphasised “prudent resource allocation with focused investment.” She re-emphasised the company’s “commitment to maintain its investment grade credit profile which underlines Siemens Energy’s fiscal year 2024 net cash target.”

“The market is starting to see traction from governmental decarbonisation investment programmes and supportive regulatory frameworks like the EU Wind Package,” said the company. “This, coupled with the arrival of decarbonisation targets in new and emerging markets, is boosting future prospects.”

The company said Siemens Gamesa had suffered “serious setbacks” and these challenges overshadowed the solid performance of the other businesses in the group. “With a clearly defined action plan based on simplifying the product portfolio, optimising footprint and operations, and strengthening processes and control, the wind business will be fixed, and reach break-even in 2026,” the company said.

A technical review of Siemens Gamesa’s onshore business has identified “deficiencies” and remediation action is being prepared. In the offshore segment, the company is ramping up production capacity at existing factories, to meet customer demand and work through its order backlog. 

“Strengthening operational excellence through plant-specific initiatives, commercial selectivity and implementing cost-saving measures, will increase profitability,” said Siemens Energy. “Siemens Gamesa expects to achieve break-even by fiscal year 2026, followed by profitable growth.”