What is Siemens Energy CEO's stance on spinning off Siemens Gamesa?

CEO Christian Bruch believes the wind turbine division, Siemens Gamesa, must first be stabilized and made profitable before a spin-off can be considered, though he acknowledges the investor's valid question.

When is Siemens Gamesa expected to achieve profitability?

Siemens Gamesa is forecast to break even this year and aims for an operating margin of 3-5% by 2028.

What are Siemens Energy's investment plans in the U.S.?

Siemens Energy plans to invest $1 billion to expand its U.S. power grid and gas turbine component production to support the growth of AI data centers.

Home / Business and Economy / Siemens Energy CEO: Stabilize First, Spin-off Later

Siemens Energy CEO: Stabilize First, Spin-off Later

3 Feb

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Summary

CEO Christian Bruch addressed activist investor's spin-off proposal.
Siemens Gamesa aims to break even this year after losses.
Siemens Energy to invest $1 billion in U.S. grid expansion.

Siemens Energy CEO: Stabilize First, Spin-off Later

Siemens Energy CEO Christian Bruch has responded to activist investor Ananym Capital's proposal for a spin-off of the company's loss-making wind turbine division, Siemens Gamesa. Bruch stated that while the investor's question is pertinent, the division must first achieve stability and profitability.

Currently, Siemens Gamesa is working towards breaking even this year, a significant turnaround from its 1.36 billion euro operating loss in 2025. The company forecasts an operating margin of 3-5% by 2028. Bruch stressed that a spin-off would only be viable once these financial targets are met.

In parallel, Siemens Energy is set to invest $1 billion in the United States. This investment will bolster the production of power grid and gas turbine components, a move designed to meet the growing demand driven by the expansion of data centers essential for AI technology.