Siemens Energy Lifts Profit Targets as Strong Q4 Results Offset Wind Division Struggles

Siemens Energy shares surged more than 9% on Friday after the company posted strong fourth-quarter results and raised its mid-term profit outlook, signaling growing confidence despite persistent challenges in its onshore wind division. The energy technology giant continues to contend with major setbacks at Siemens Gamesa, yet strong momentum in its gas turbine and grid technology businesses helped drive improved performance across the group.

CEO Christian Bruch acknowledged that Siemens Gamesa remains a heavy drag on earnings, citing limited synergies between the troubled onshore wind unit and the healthier offshore business. Gamesa, still working through the quality issues that surfaced two years ago, ended the fiscal year with an operating loss of €1.36 billion. Even so, management reiterated its expectation that the division will reach break-even by 2026.

Driven by strong global demand for power infrastructure, Siemens Energy raised its medium-term profitability goals and announced plans to issue its first dividend in four years. According to Bruch, the company’s fiscal 2025 marked a turning point, with sustainable growth and improved profitability increasing overall corporate value. He emphasized that the renewed dividend reflects both a strengthened financial position and long-term confidence in the energy market’s outlook.

The company now targets returns before special items of up to 16% by fiscal 2028, an upgrade from the previous 12% goal. Fourth-quarter revenue climbed 9.7% to €10.4 billion, while the grid technologies segment reported a 71% jump in profit and a margin approaching 15%—a result fueled by booming global demand for transformers, circuit breakers, and other power-grid components as AI-driven data centers accelerate electricity consumption.

Gamesa again posted an operating loss in the quarter, pressured by older low-margin onshore contracts, offshore ramp-up costs, and U.S. tariffs. Still, Siemens Energy expects favorable industry trends to persist, forecasting comparable revenue growth of up to 13% in fiscal 2026 and a profit margin before special items between 9% and 11%.

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