Siemens Energy Charts Course Amid Wind Power Division Tensions

Siemens Energy’s recent annual general meeting in Berlin, attended by 800 shareholders representing 66.10% of the company’s capital, highlighted a strategic crossroads for the firm. The gathering was notable for the approval of a dividend payment—the first in years—yet this development was quickly overshadowed by a deeper debate concerning the future of its struggling wind power subsidiary, Siemens Gamesa.

A Dividend Return and Shareholder Dissent

Shareholders overwhelmingly endorsed a dividend distribution of 0.70 euros per share, with 99.99% of votes in favor. This move signals a return to shareholder payouts for the energy technology group, following a period of state-imposed restrictions linked to earlier federal guarantees.

However, the dividend announcement became a secondary issue as activist investor Ananym pushed for a spin-off of the Gamesa division. The investor argues that the wind unit is diluting the group’s overall profitability. While Siemens Energy is targeting double-digit returns, Gamesa is only projected to achieve a margin of 3 to 5 percent by 2028. Ananym contends that even a restructured wind business would continue to be a long-term drag on earnings.

Management, led by CEO Christian Bruch, has received backing from major institutional investors including DWS, Deka Investment, and Union Investment. According to Reuters, these firms have positioned themselves against an immediate separation, instead supporting the current stabilization plan for Gamesa. The division reported an operating loss of 1.36 billion euros for the 2025 fiscal year. Although this loss narrowed significantly to 46 million euros in the first quarter of 2026, achieving break-even remains the target for the current financial year.

Core Business Strength Provides a Foundation

The company’s operational performance offers robust support for the management’s strategy. Siemens Energy reported a record order intake of 17.6 billion euros for the first quarter of fiscal 2026. Revenue climbed 8.2% to 9.68 billion euros, while profit before special items more than doubled to 1.16 billion euros, representing a 12% margin. Pre-tax free cash flow reached a substantial 2.87 billion euros.

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This performance was primarily driven by the Gas Services unit, which booked 102 gas turbines—its strongest quarter on record. The Grid Technologies business also saw benefits from rising demand for data center infrastructure, particularly in the United States. Supervisory Board Chairman Joe Kaeser described the company’s recovery as one of the most successful turnarounds within the DAX index.

Looking ahead, CEO Bruch announced a share buyback program of up to 6 billion euros, set to run through the end of 2028. He also outlined a 1 billion US dollar investment program for U.S. facilities. During the 2025 fiscal year, the corporation inaugurated seven new factories and created 4,000 jobs, with a significant portion located in Europe.

The Path Forward Hinges on Profitability

For the full 2026 fiscal year, Siemens Energy forecasts revenue growth between 11% and 13%. It anticipates a profit margin before special items in the range of 9% to 11%, with net income expected to hit 3 to 4 billion euros. Pre-tax free cash flow is projected to be between 4 and 5 billion euros. Market analysts, on average, anticipate revenue of 43.9 billion euros and a net profit of 3.2 billion euros.

The upcoming quarterly results on May 12th will be a critical indicator of whether Siemens Gamesa can reach its break-even target. Failure to do so is likely to intensify pressure for a separation of the wind business. For now, the strength of the core operations, supported by a multi-billion euro order backlog, provides the foundation for CEO Bruch’s stabilization course.