Siemens Energy is back on track, the stock gains more than 10%

After tax, Siemens Energy earned 108 million euros from January to March, compared to a loss of 189 million euros last year.

The development in the second quarter testifies to "the first successes in stabilizing the wind sector", declared Christian Bruch, CEO of the company which had to be rescued by the German state last year with a bailout plan of 15 Billions of Euro's.

The turnover of approximately 8,3 billion euros increased by almost 4% over one year.

However, new orders fell on a comparable basis by 22% to 9,5 billion euros, mainly due to the lack of orders at Siemens Gamesa.

The priority is the recovery of this subsidiary, which was still in deficit at the end of March, where numerous failures discovered on its products proved very expensive to repair and had plunged the activity into an unprecedented crisis.

For this entity, the loss of 448 million euros at the end of March is in line with expectations, contrasting with the series of warnings on last year's results.

“No new bad news, this is a major positive,” noted Philip Buller, analyst at Berenberg.

The plan announced on Wednesday to turn around Siemens Gamesa's accounts by 2026 includes, among other things, capacity adjustments and job cuts in onshore wind turbines.

This sector, which has been in crisis for years, will in the future focus on key markets in Europe and the United States.

Siemens Energy also surprised by announcing a change in management of its subsidiary: Jochen Eickholt, 62, in place since March 2022, will hand over the baton at the beginning of August to Vinod Philip.

The group has also revised its annual objectives upwards: sales must increase by 10 to 12% compared to 3 to 7% previously, and the operating margin before exceptional items should be between -1% and +1%, the low scenario. previously being -2%.