• Mon. Dec 11th, 2023

Siemens Energy Prioritizes Revival of Its Wind Business


Nov 21, 2023

Siemens Energy is taking steps to turn its struggling wind turbine business around and return to profitability by 2026. The company has also extended its midterm margin targets for its core businesses. In the offshore segment, Siemens Gamesa is increasing production capacity at existing factories to meet customer demand, while the onshore segment is preparing remediation action for identified deficiencies. The wind business will be fixed through a simplified product portfolio, optimized footprint and operations, and strengthened processes and control.

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.

The CEO of Siemens Gamesa emphasized that the turnaround of the wind turbine business remains a top priority and the company now has a defined path and action plan in place. The company aims to increase production capacity in the offshore segment by optimizing its operations and footprint, while addressing any deficiencies in the onshore segment through remediation action.

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