Secular Trends Are Boosting Siemens Energy's Moaty Businesses

Between 2020 and 2023, Siemens Energy failed to produce net income because of issues with its subsidiary, Siemens Gamesa. Defects in its onshore wind turbines required significant repair costs, fueling high operating losses that peaked in 2023. Thanks to a restructuring plan that includes the full integration of Siemens Gamesa into the group, losses were reduced by 69% in 2025. The company targets breakeven in 2026 and a low- to mid-single-digit profit in 2028. We view the turnaround plan as credible and the targets within reach.