Siemens Energy’s chief executive Christian Bruch has downplayed the idea of major cost-saving links between the company’s profitable offshore wind business and its loss-making onshore wind operations, casting fresh doubt on whether the two segments will remain together long-term.
Speaking on Friday, Bruch described the wind division as “a tale of two cities.” He praised the offshore side as a clear market leader with top-tier products and growing profitability, while highlighting persistent uncertainty around onshore wind the unit hit hardest by the quality problems that erupted two years ago.
Those defects triggered a €1.36 billion operating loss for the entire wind business in the fiscal year that ended in September, and forced a lengthy sales freeze on the latest onshore turbine models.
Chinese Competition Clouds Onshore Future
Bruch pinpointed competition from China as the biggest unknown: “The decisive question is whether Chinese manufacturers will flood the market. Right now, nobody can predict that.” He added that it remains too soon to decide the onshore unit’s ultimate path.
On the prospect of splitting the division or selling the weaker onshore arm, the CEO noted that operational synergies between offshore and onshore are “considerably lower than many assume,” weakening the case for keeping everything under one roof.
Turnaround Still on Track
Despite the challenges, Siemens Energy insists the overall wind business will return to break-even by 2026. The company recently lifted its medium-term profit guidance and plans to pay its first dividend in four years, helped by robust orders for gas turbines and grid equipment.
Investors continue to watch closely to see whether management ultimately chooses to retain, restructure, or offload the troubled onshore wind operations as the global market evolves.
