One day after the German Government revealed a rescue package that would involve Spain, Siemens Energy posted record losses of 4.588 billion euros, while reporting 712 million euros in red. The deficits stem from persistent issues at Siemens Gamesa, the Spanish unit, and the company does not anticipate breaking even in its accounts for the 2026 fiscal year.
The roots of the trouble stretch back to mid-year when turbine malfunctions intensified. As disclosed in August, a limited set of machines across certain platforms faced rotor blade and bearing issues on ground-based models 4.X and 5.X. Months later, continued technical review confirmed the earlier forecast: the year would end with a loss near 4.5 billion euros, with the most significant impact carried into 2024 and 2025.
Siemens Energy has laid out a sequence of corrective steps and mitigation measures. Operations are paused to implement these changes, and the plan details when and how the 5.X platform will resume. Siemens Gamesa’s activity scope is under review, aimed at turning around performance and restoring profitability. Additional details are expected at the Capital Market Day scheduled for November 21.
The wind segment remains central, though other areas such as Gas Services, Grid Technologies and Industry Transformation surpassed their 2023 revenue forecasts and delivered margins at or above expectations in their respective online channels. In a year marked by exceptional challenges, Siemens Energy showed resilience across most divisions, while progress continued on Siemens Gamesa’s onshore turbines. The leadership reaffirmed prior results, and the chairman and CEO emphasized that maintaining a solid balance sheet remains a top priority.
public rescue plan
The German Government agreed to guarantees totaling 7.5 billion euros, with 11 billion euros of the total package funneled to Siemens Energy through a bank consortium. In return, the federal government will receive a market-standard payment from Siemens Energy. An additional 1 billion euros will come from a separate consortium led by Deutsche Bank. The structure aims to secure long-term order growth in key energy transition projects while lowering risk for involved parties. Siemens Energy’s current order book stands at 112,000 million euros. Given the long duration of energy sector projects, advance payment guarantees, finality guarantees, or warranty deeds are common. Banks issue these guarantees for a fee, typically 5% to 25% of the order value.
Additionally, Siemens Energy plans to sell 18% of its stake in Siemens Limited (SIL) in India to Siemens AG. When Siemens Energy was created in 2020, SIL had not yet separated for administrative reasons. Today, 24 percent of SIL belongs to Siemens Energy and 51 percent to Siemens AG. This partial sale marks the initial step in the planned and now accelerated separation of Siemens Energy and Siemens AG in India. The sale is not expected to affect Siemens Energy’s operations in India, which will continue as before. India remains a strategic market for the group.