Siemens Energy is a global leader in the energy sector. Through its innovative products and services, the company is driving the transformation of the energy industry. We analyze the company’s financial performance, strategic moves, and opportunities to understand its potential.

Last Updated: 6. November 2023By

The energy transition is particularly affecting the German industry. Fortunately, there is a company like Siemens Energy that can accompany the transition – or not? The media increasingly shows the company in a crisis. We have analyzed the value for you. Siemens Energy is a globally operating industrial corporation in the energy sector.

The company split off as an independent company from Siemens AG in September 2020. The corporation is active almost along the entire energy value chain and offers solutions for energy transmission and power generation. The most important products include gas and steam turbines, generators, transformers and compressors.

Orders without much sense The results of Siemens Energy in the 3rd quarter were disappointing and affected by burdens at Siemens Gamesa. These arose mainly from quality problems with the onshore platforms as well as increased product costs and the challenges of ramp-up in the offshore business. The revenue increased by 3.1% to 7.5 billion €, on a comparable basis it was 8%. The result before special items was -2.05 billion €, mainly due to the burdens at Siemens Gamesa. However, with the exception of the wind business, all other areas have developed well and offer products that should benefit from the energy transition to a large extent.

The result of the other divisions increased significantly due to a convincing operational performance. All in all, a loss of 2.93 billion € was recorded. The order intake increased by 51.3% to 14.9 billion €. In the first 9 months, Siemens Energy has acquired almost 40 billion € in new orders. A plus of 52.9% compared to the previous year. However, Siemens Energy cannot implement the high demand as the production capacities in the wind turbine business, in particular, have not been expanded quickly enough, which is why the book-to-bill ratio has jumped to 1.98.

Our clear opinion Against the background of the developments at Gamesa, the Board of Directors has adjusted its outlook. A comparable revenue growth in a range of 9 to 11%, an earnings margin before special items between -10 and -8% and a loss of around 4.5 billion € are now expected. This stock is only for gamblers. The further development depends on many factors that can hardly be foreseen today. Keep your hands off!