Siemens Energy posts record Q3 as wind unit turns first profit since 2022

Wind turnaround

Siemens Gamesa, the wind turbine subsidiary that had dragged Siemens Energy into losses for years, posted an operating profit of €56 million in the fiscal third quarter (April–June), compared with a loss of €425 million a year earlier. It is the unit's first quarterly profit since 2022. CEO Christian Bruch called the result a "fantastic achievement by the team."

We achieved record figures for order intake, revenue and profitability while also improving our efficiency. The fact that our wind business is profitable in a quarter for the first time since 2022 is a fantastic achievement by the team.

Record orders and revenue

Group revenue climbed around 18 percent to €11 billion, while order intake rose roughly 8 percent to €18 billion, both quarterly records. The United States was a particularly strong source of new orders. The gas and services division saw orders jump 62 percent to nearly €10 billion, with an operating margin of 17.2 percent and profit of €645 million, up about 60 percent. Grid Technologies delivered a 19.8 percent margin and €718 million in profit, also up roughly 60 percent. Transformation of Industry contributed €214 million (Handelsblatt reported €218 million), a 39 percent increase, with a margin of 14 percent.

Gamesa order intake collapses

Despite the return to profitability, Gamesa's new orders fell to €1.05 billion from €4.89 billion in the prior-year quarter, which had included a large one-off contract. The order backlog remains substantial at €31 billion, but the volume of new orders is well below the €2.7 billion in revenue the unit processed in the quarter, a pattern that also holds for the full fiscal year so far.

Transformation of Industry spin-off talks

The supervisory board on Tuesday discussed a possible separation of the Transformation of Industry unit under the internal project name "Project Voyager," according to industry sources. An extraordinary board meeting is scheduled for the end of August, though a final decision is not expected then. The unit, which includes industrial energy infrastructure, compressors for the oil industry, and hydrogen electrolysers, has improved its margin to 14 percent but is seen as unlikely to reach the 20 percent margins of Gas and Grid. Proponents of a carve-out argue it would reduce complexity and simplify capital allocation. Options include a sale or an initial public offering. Siemens Energy declined to comment.

Outlook

After nine months, Siemens Energy has accumulated €2.8 billion in profit and is on track to meet its full-year target of around €4 billion. The strong performance across gas, grid, and now wind provides momentum, though the Gamesa order drought and the uncertain future of Transformation of Industry remain key watchpoints.