Siemens Energy profit jumps as wind business returns to black

Siemens Energy reported a sharp rise in third-quarter profit on Wednesday, helped by strong demand for power equipment and the return to profitability of its long-struggling wind turbine business.

The German energy technology company posted net profit of €1.2 billion ($1.4 billion) for the April-to-June quarter, around 70% more than a year earlier.

Demand for electricity infrastructure remained strong, partly driven by the expansion of data centres.

Wind turbine subsidiary Siemens Gamesa also made a positive contribution to earnings for the first time since 2022. The division had weighed heavily on the group for years, repeatedly prompting profit warnings and offsetting earnings from Siemens Energy's other businesses.

Siemens Gamesa reported an operating profit of €56 million for the quarter, compared with a loss of €425 million a year earlier.

"We delivered record orders, revenue, and profitability, while continuing to improve efficiency," chief executive Christian Bruch said.

"The fact that our wind business has returned to profitability in a quarter for the first time since 2022 is a fantastic achievement by this team."

Most of the group's profit still came from its other divisions.

Earnings from the gas turbine and servicing business rose by around 60% to €645 million, while profit from grid technologies increased by a similar amount to €718 million.

The Transformation of Industry division contributed €218 million, up around 39% year-on-year.

Quarterly revenue climbed around 18% to a record €11 billion, while orders rose about 8% to €18 billion, with particularly strong demand from the United States.

Siemens Energy has now earned €2.8 billion in the first nine months of its financial year and it remained on track to meet its annual profit target of around €4 billion.