Siemens Energy has raised its forecast for the current fiscal year and reports a net profit in the second quarter. The company recorded a surplus of 68 million euros after a loss of 204 million euros was reported in the same period last year. This positive development is driven by strong demand for technologies to support the energy transition and stabilization in the wind business.

The Munich Energy Company Achieved a Revenue Increase to 8.28 Billion Euros in the Quarter Ending March 31, Compared to 8.03 Billion Euros in the Same Period Last Year. However, Incoming Orders Dropped by 22 Percent to 9.47 Billion Euros, While the Order-to-Revenue Ratio Remained Above 1, Raising the Order Backlog to 119 Billion Euros.

Due to positive business performance, Siemens Energy adjusted its annual targets and now expects revenue growth between 10 and 12 percent as well as a free cash flow of around 1 billion euros. The target margin before special effects is indicated to be between minus 1 percent and plus 1 percent, and the target for net income of up to 1 billion euros has been confirmed.

At the same time, the company announced a comprehensive reorganization of its wind business, Siemens Gamesa. As of August 1, Vinod Philip will take over as the new CEO, replacing Jochen Eickholt, who will leave the company on September 31. Philip, currently head of global functions at Siemens Energy and former Chief Technology and Strategy Officer, will oversee the transition until his departure.

The reorientation of Siemens Gamesa includes long-term operating margins in the double-digit range in addition to the goals that were already set in November when the restructuring was announced. The onshore business will focus on markets with a stable regulatory framework, particularly the European internal markets and the USA. The offshore sector will expand its capacities at locations in Germany, Denmark, and France.

These measures will also lead to job cuts, although the total number of employees is expected to remain constant due to growth in the offshore sector. The company plans to continue employing as many of the affected employees as possible through internal relocations.