Siemens Energy CEO: The idea of splitting off the wind power business is feasible, but the business must first return to profitability

Siemens Energy CEO said on Tuesday that the proposal from activist investor Ananym Capital to spin off the company’s loss-making wind turbine unit is reasonable, but he added that the unit must first achieve stable operations and return to profitability.

US-based Ananym Capital stated in December last year that it held shares in Siemens Energy and called for management to evaluate its wind power division, Siemens Gamesa. The firm suggested that the unit could be worth up to $10 billion in the future, and a spinoff could boost investor returns by 60%.

“This is a very valid question, and I often think about it myself,” said Christian Bruch, adding that the business needs to clearly move toward achieving double-digit profit margins.

“At the current stage, the top priority is to achieve stable operations and profitability for the business,” he emphasized. “It’s too early to discuss a spinoff before these goals are met.”

Siemens Gamesa recorded an operating loss of 1.36 billion euros ($1.6 billion) in 2025 and currently expects to break even this year and reach an operating margin of 3%-5% by 2028.

Bruch pointed out that the offshore wind business has the potential to replicate the successful transformation of Siemens Energy’s grid division, which saw its profit margin rise from 3.6% in 2022 to 15.8% in 2025, helping the group’s stock price soar nearly elevenfold in the past two years.

“Looking back to 2020, no one was optimistic about the grid business at the time, and nobody believed it would become the company’s brightest engine of profit growth. Yet just four years later, it really achieved a turnaround,” Bruch said.

“Can the offshore wind business achieve a similar turnaround? The answer is yes. But for now, I haven’t seen it yet. That’s why I believe the key issue is timing and conditions.”

Bruch also revealed that as the US works to meet the power demands of artificial intelligence technology by building data centers, Siemens Energy plans to invest $1 billion to expand US grid and gas turbine component manufacturing.

Editor: He Yun