Siemens Gamesa has been bleeding billions for the past several years, but things are moving forward for the wind turbine manufacturer, which significantly reduced its deficit in the second quarter of the company's uneven financial year. Now Gamesa is approaching break-even after major improvements in earnings. This is evident from the accounts of the wind turbine manufacturer's parent company Siemens Energy.
Siemens Gamesa had a deficit of 39 million euros in the quarter, compared to a deficit of 510 million euros in the same period last year. At the same time, the result before special items improved to a deficit of 44 million euros from 249 million euros, while the profit margin before special items increased to minus 1.7 percent. from minus 9.2 percent.
On a comparable basis, revenue increased by 0.4 percent to 2.53 billion euros, while order intake grew to 846 million euros. However, the order backlog fell to 33 billion euros from 35 billion euros the previous year. The improvement was mainly due to productivity improvements and higher cost efficiency, while growth in the offshore business and higher service revenue also contributed positively. At the same time, Siemens Gamesa received the first orders for the company's new SG 7.0 platform, which replaces the 5.X turbine.
Siemens Gamesa is also raising its revenue growth expectations for the 2026 financial year to 3 to 5 percent from the previous 1 to 3 percent, while maintaining the break-even operating margin expectation.
- Our strong market momentum continues despite geopolitical uncertainty and has led to another exceptionally strong quarter and first half of the financial year. The raised expectations reflect our confidence that this development will continue, as well as our robustness and project execution, says Christian Bruch, CEO of Siemens Energy.
Parent company raises expectations
The Group received total orders for 17.7 billion euros in the quarter, while revenue increased to 10.3 billion euros. Net profit also increased to 835 million euros from 501 million euros the previous year.
Gas Services increased revenue to 3.48 billion euros and experienced a record order intake of 8.87 billion euros driven by demand from, among other things, US data centers and European power projects. Grid Technologies raised revenue to 3.07 billion euros, while order intake increased significantly after, among other things, a large high-voltage order in the Baltic Sea to over 1 billion euros.
Transformation of Industry increased revenue to 1.42 billion euros. euros, but at the same time experienced falling order intake due to lower demand in the Middle East.
In connection with the quarterly financial statements, Siemens Energy raises its expectations for the entire group and now expects comparable revenue growth of 14 to 16 percent. against previously 11 to 13 percent. Net profit is also expected to land at around 4 billion euros.
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