Siemens Energy shares jump after group posts €1.3bn profit as turbine crisis eases

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Shares in Siemens Energy jumped 20 per cent on Wednesday after the company reported an annual net profit of more than €1bn and upgraded its medium-term targets as it begins to emerge from a crisis in its wind turbine division.

The German energy engineering group announced a net income of €1.3bn for its fiscal year 2024, which ran to the end of September.

That compares with a historic loss of €4.6bn the previous year after the business revealed technical problems with some of its turbines and was forced to take a €15bn government-backed bailout.

While chief executive Christian Bruch declined to say that Siemens Energy had put the wind turbine crisis behind it, he said the company had discovered no new technical faults in its turbines and had “achieved everything we wanted to in 2024”.

However, he cautioned that “we are not through yet in terms of working off the quality matters. We remain aware that this will remain a lot of hard work.”

The company, which was spun out of the Siemens conglomerate in 2020, upgraded its medium-term outlook, raising its target profit margin for the fiscal year 2028 from a minimum of 8 per cent to between 10 per cent and 12 per cent.

It said its improved 2024 performance had been driven by strong orders for its divisions providing gas services, grid technologies and industry transformation.

The wind turbine division reported a €472mn loss, an improvement from the previous year’s €670mn loss. The company said the figure partly reflected higher project costs “due to the known quality issues”.