Siemens Energy has drawn up a plan to return profitability at Siemens Gamesa by fixing quality issues in onshore and driving ramp-up in offshore.
At its third Capital Market Day in Hamburg, Germany, Siemens Energy presented a strategic outlook to analysts and investors.
The Executive Board outlined a clear path to create shareholder value along three priorities: Deliver on profitable growth, fix the wind business and maintain a solid financial foundation.
The wind subsidiary Siemens Gamesa has suffered serious setbacks.
These challenges overshadowed the solid performance of the other businesses.
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, stated Siemens Energy.
The technical review in onshore has identified the deficiencies with high impacts in the onshore business and remediation actions are under preparation.
Siemens Gamesa will be focusing its onshore business based on specific criteria, such as “supportive regulations and policies and, sizeable profit pools resulting in an optimised footprint”.
In offshore, Siemens Gamesa is ramping up production capacity at existing factories to meet customer demand and work through the order backlog.
Siemens Gamesa expects to achieve break-even by fiscal year 2026 followed by profitable growth.
“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,” said Christian Bruch, President and CEO of Siemens Energy.