Siemens Games and his business offshore wind power have been featured prominently in the group's most recent results, showing a mixed trend between increased orders and sustained losses. The company, a wholly owned subsidiary of Siemens Energy, still hasn't managed to close the year with positive figures, but its offshore wind activity has set contracting records and positioned the company as a benchmark within the sector.
The volume of new orders achieved in recent months, especially for large contracts linked to wind farms in the Baltic Sea, endorses Siemens Gamesa's key role in the industry, although profits are still resilient. Despite this context, the company continues to face high costs in their projects and the impact of US trade policies.
Record orders for Siemens Gamesa thanks to offshore wind power
The Siemens Energy subsidiary recently achieved one of the most significant order increases in its history, with Landmark contracts to supply offshore wind turbines which add up to about 3.300 millones de euros only in the Baltic Sea — one valued at 1.800 million and another 1.500 millionIn total, Siemens Gamesa's new portfolio is around 4.900 millones de euros after the last quarter.
El growth in the offshore area has not been able to fully compensate for the difficulties that the business is experiencing onshore wind, affected by both the slowdown in pre-orders and the depreciation of currencies. The company has also begun marketing its new turbine. SG 7.0, aimed at gradually replacing its previous model, 5.X.
The global order book Siemens Gamesa's sales at the end of the third quarter already exceeded 38.000 millones de euros, a volume that reflects the high international demand for the wind energy segment, especially in the offshore market.
Persistent losses from costs and tariffs
Despite the boost in activity, Siemens Gamesa continues to drag significant quarterly lossesIn the first nine months of the fiscal year, the company recorded 1.358 billion euros in red numbers, almost 10% more than the same period last year. Between April and June alone, losses totaled 425 million, although lower than the same quarter last year.
This negative result is mainly explained by the rising costs of maritime projects and effect of US tariffs, which have added a 50% surcharge to the import of steel needed for wind turbines. Losses attributed to these tariffs amount to €100 million in Siemens Energy's consolidated annual results.
Other factors that have played against have been the provisions arising from internal audits and the technical problems already resolved on its land-based turbine platforms. currency depreciation It has also been a drag on profitability in the onshore sector.
Siemens Energy accelerates its offshore business
As Siemens Gamesa grapples with its bottom line challenges, the parent company Siemens Energy has achieved the best quarter in its history in terms of orders, exceeding 16.600 millones de euros, which represents an increase of 64,6%. The group's net profit in the third quarter stood at 697 millones de euros, after leaving behind the losses of the same previous period.
The company expects to close the year at the top of its objectives, with a sales growth between 13% and 15% and the expectation of reaching up to 1.000 million net profit. In addition, following the removal of restrictions by the German Bundestag, Siemens Energy could return to distribute dividends ahead of schedule.
perspectives
Looking ahead to the coming years, Siemens Gamesa is working to cut expenses and strengthen its specialization in the offshore wind business, with the aim of balancing its accounts in the medium term. Its forecasts indicate it could emerge from losses in 2026, after several years of losses.
At the same time, parent company Siemens Energy maintains its focus on diversification: while gas, smart grids, and digitalization services continue to deliver high levels of profitability, the wind energy division remains a strategic cornerstone, particularly given the demand for renewable energy in Europe and the United States.
La Offshore wind power continues to emerge as one of the drivers of growth For Siemens Gamesa, which, despite operational and regulatory challenges, has been key to strengthening the group. With record order intake and the expectation of greater efficiency in the coming quarters, the offshore segment confirms its importance to the future of Siemens Energy.
