Siemens Energy shrugs off tariff concerns after bumper quarter, but offshore wind unit still lagging

German giant Siemens Energy has shrugged off the threat posed by US tariffs after reporting one of its “strongest quarters ever”, although the group’s “problem child” turbine-making subsidiary Siemens Gamesa continues to post losses.

For the whole group, Siemens Energy reported surging orders and revenues, led by its gas services and grid technologies units.

Orders amounted to €14.4bn, up 52% on the prior-year quarter, and revenue grew by 21% on a comparable basis, to €10bn.

Net income was €501m, compared with €108m in the same quarter of 2024, as a forecast net income of up to €1bn for 2025 reflected a fairly benign perspective on the US tariff hikes introduced last month.

Siemens Energy said it is closely monitoring developments and continuously analysing the potential impact of tariffs on its net assets, its financial position and results but, for the second half of the fiscal year 2025, said it expected a limited direct impact of less than €100m.

"The main message is that (US tariffs) are an annoyance, but this is manageable," CEO Christian Bruch told an online press conference.

Bruch added that it is too early to estimate the impact of the tariffs, including secondary effects such as increased time at ports and customs, but also whether the measures might be eased if it became clear that they were pushing up prices in the US.

In the wind sector, Bruch said the group had been right to take a conservative approach to investing in US production,

"We don't want to move with haste," he said. "It is important to be sure that investments are worthwhile."

Globally, Siemens Gamesa continued to be affected by the effects or continuation of the temporary interruption of sales activities for the 4.X onshore turbine, which it resumed sales of last year, and the planned relaunch of the 5.X turbine. Sales of both platforms were paused due to quality issues found in 2023.

Siemens Gamesa's bottom line, before special items, remained negative in the quarter, although losses narrowed to €249m, from €446m one year ago.

Its income continued to be impacted by follow-on effects of cost increases related to the ramp-up of offshore activities as well as the quality issues in the onshore area.

"This pricing momentum has impacts on projects, but we see this stabilising for offshore wind," he said.

"I think (Orsted's decision on Hornsea 4) was less driven by price increases on the offshore turbine side, and more on the general infrastructure around it, although that is obviously... something that needs to be watched."