Siemens Gamesa wind turbine orders drive group to new record
Guidance for wind turbine unit still points to a loss of around €1.3bn for the fiscal year
Surging demand for wind turbines helped Siemens Energy score its highest ever quarterly order intake as the German industrial giant announced results for the third quarter of its fiscal year, which runs to June 30.
At €16.6bn ($19.23bn), Siemens Energy exceeded its order intake of the same quarter last year — which was also a record — by nearly 65%
In the onshore business, sales activities were started for the successor of the troubled 5.X platform (SG 7.0-170).
Siemens Gamesa's orders surged to €4.89bn, up 200% on the same fiscal quarter of 2024.
The group-wide order backlog rose to a record €136bn, including negative currency translation effects of around €4bn.
Siemens Energy also posted a net income of €697m, compared with a net loss of €102m in the third fiscal quarter of 2024. Revenue continued to grow at a double-digit percentage rate to €9.7bn, representing an increase of 13.5% on a comparable basis.
Group profit before special items was helped by an improved operational performance, but in this Siemens Gamesa still lagged, with losses before special items narrowing just 2% to €438m from the third fiscal quarter last year.
Siemens Energy said the wind turbine manufacturer's earnings were held back by higher tariffs imposed by the US. amounting to a direct impact of around €100m, mainly driven by one-time effects related to long-term service agreements.
Siemens cited the effects of cost increases related to the ongoing ramp-up of offshore activities as well as the quality issues in the onshore area as a continuing factor in this lag.
Siemens Gamesa's growth in the offshore area could not fully offset a decline in the onshore business caused by weak orders in previous reporting periods, the group said
Guidance for Siemens Gamesa highlighted revenue growth of 0% to 2% and a negative profit before special items of around €1.3bn.
Demand landscape
A changing demand landscape also drove strong growth in other group divisions, with orders for the gas services division surging 22% from the same quarter last year and its profits up 119%.
"Enormous demand for electricity for data centres in particular is driving demand for our projects in the US, said CEO Christian Bruch. The company said 60% of its 14GW of gas turbine orders receivedso far this year were for data centres.
Similarly orders for grid technologies increased 24%, with the US providing the biggest drive in geographical terms. Profit for this segment rose 82% on the year to reach €447m.
“Our businesses delivered another strong quarter, continuing the solid performance of this fiscal year," said Bruch.
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