- Siemens Energy Makes Profit Despite Challenges in the Wind Energy Sector
Siemens Energy kicked off its fiscal year 2025 on a positive note, despite facing ongoing losses at its wind power subsidiary, Siemens Gamesa. In the first quarter, the company managed to rake in a €252 million profit, announcing this figure at the beginning of the year. Although this quarterly profit was a nominal drop compared to the previous year's €1.6 billion, thanks to the sale of a stake, Siemens Energy managed to achieve this figure without any such assist.
CEO Christian Bruch attributed the strong start to the increasing demand for electricity. This high demand also pushed the order backlog to a record level of €131 billion. Bruch expressed his optimism, stating that the company's performance reflected the market opportunities that arise in response to this growing electricity demand.
The company's resilience across multiple segments helped offset the challenges faced by its wind power business. Siemens Energy reported improved results in its Grid Technologies and Transformation of Industry Segments, contributing to its overall strong performance. Additionally, the company's free cash flow before taxes exceeded forecasts, leading to a revised annual guidance with an anticipated surpassing of the €1 billion mark in free cash flow before taxes.
Furthermore, Siemens Energy experienced reduced losses in its wind power subsidiary, which helped mitigate the impact of losses in this segment. The company's strong balance sheet also remains a top priority, providing a solid foundation for its growth and success in the energy transition.
Overall, Siemens Energy's robust beginning to the fiscal year 2025 is a testament to its resilience and diversified portfolio. Despite the financial difficulties faced by its wind power subsidiary, Siemens Energy has demonstrated its ability to navigate challenges and capitalize on market opportunities, paving the way forward for a prosperous year.
The company shared its quarterly figures at the beginning of the fiscal year, with a profit of €252 million in the first quarter of 2025. In discussing the company's performance, CEO Bruch mentioned the importance of the quarterly figures, stating that they reflected the market opportunities arising from the increasing demand for electricity.