Siemens Energy reports profitable wind business for the first time since 2022

The Siemens Energy stock reacted positively to the news. In the market, the move was seen as a signal that the restructuring efforts in the wind segment, ongoing for years, are bearing fruit.

Decline in Gamesa orders

However, the mood was not entirely untroubled. According to the company, Gamesa recorded a significant decline in order intake. The structural problems in the wind business therefore remain, even though profitability has returned.

The background is a situation that has been strained for years at Siemens Gamesa Renewable Energy. The wind subsidiary had repeatedly burdened the group with high losses, quality problems and project delays. Bruch had therefore subjected the business to a consistent restructuring.

Profitability in a single quarter does not automatically mean the crisis has been fully overcome. Industry observers point out that sustainable profits can only be expected once order books begin to grow again and margins remain stable.

Other group divisions in focus

In addition to the wind business, Siemens Energy is also preparing the positioning of other group divisions. As reported by Handelsblatt on Wednesday, a supervisory board meeting on the Transformation of Industry business area is scheduled for the end of August. However, a decision is not expected at that meeting.

Analysts reacted cautiously optimistic. Houses such as Berenberg Bank, Jefferies and Gossler & Co. KG had previously accompanied the development of the wind segment critically. The return to the black is seen as an indication that the measures initiated are taking effect.

Siemens Energy is one of the largest suppliers to the global energy industry. The company provides technology for power generation, transmission and distribution and is therefore counted among the beneficiaries of the world's growing electricity demand, driven by data centers, electric mobility and industrial electrification.

Significance for the energy transition

The success in the wind business is also strategically significant for the group. It strengthens the argument that Siemens Energy can position itself broadly – with conventional energy technology, grid technology and renewables in equal measure.

Overall, it remains to be seen whether the wind segment can confirm its profitability in the coming quarters. However, the current quarterly report at least provides a glimmer of hope after a long dry spell.