Siemens Gamesa turnaround on track as parent delivers on FY goals

Siemens Gamesa's SG 10.0-193 DD offshore wind turbine. Source: Siemens Gamesa

Siemens Energy AG (ETR:ENR) on Wednesday said it met or exceeded its financial targets for the 2024 fiscal year, with the turnaround of its wind business Siemens Gamesa progressing as expected.

The company recorded a full-year net profit of EUR 1.34 billion (USD 1.42bn), against a EUR-4.59-billion loss in the previous year. Profit before special items came in at EUR 345 million, with a profit margin before special items of 1%, at the upper end of the guided range. Revenue rose 12.8% on a comparable basis to EUR 34.5 billion, slightly beating the company’s projection for 10%-12% growth.

Siemens Gamesa remains committed to reaching break-even in fiscal year 2026, the company said. Sales of the 4.X onshore platform resumed at the end of the fiscal year with low volume, while the ramp-up of the offshore business continued during the year. The business narrowed its loss before special items to EUR 458 million in the final quarter of the fiscal year from EUR 664 million a year ago. It increased its revenue to EUR 3.08 billion from EUR 2.59 billion, driven by an increase in the offshore business due to progress in the ramp-up of activities, while orders edged down as an increase in offshore business could not compensate for decreases in the onshore and service businesses.

More details about the unit's results:

EUR million	Q4 FY 24	Q4 FY 23	FY 24	FY 23
Orders	4,145	4,226	7,256	16,836
Revenue	3,082	2,592	10,008	9,092
Profit before special items	(458)	(664)	(1,781)	(4,347)

At the start of the fiscal year, Siemens Energy obtained counter guarantees from the German government to secure its growth. The company said it plans to exit the federal counter guarantees as soon as possible as they are subject to considerable additional fees.

With a full-year order intake of EUR 50.2 billion, the company's order backlog rose to a new record of EUR 123 billion. The Grid Technologies segment saw the strongest increase, while orders at Siemens Gamesa dropped due to the sales stop of the 4.X and 5.X platforms.

For fiscal year 2025, Siemens Energy projects comparable revenue growth of 8% to 10% and a profit margin before special items between 3% and 5%. The company also unveiled new mid-term financial targets for the 2028 fiscal year, aiming for a profit margin of between 10% to 12%.

(EUR 1 = USD 1.062)

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