Siemens Energy appears to be back on track after pushing through a restructuring of its troubled wind power subsidiary, Gamesa.
The German energy technology company reported positive quarterly earnings on Wednesday, and dramatically raised its profit forecast for the remainder of the current year.
The company, which split off from German engineering giant Siemens in 2020, has struggled with losses in the wind power subsidiary and has been forced to issue numerous profit warnings in its relatively short history.
But Wednesday's report indicated that Siemens Energy made a bottom-line profit of €108 million ($116 million) between January and March. That result is a major improvement over the loss of €189 million the company reported in the same quarter of last year.
Turnover rose by 3% to €8.3 billion, the company said.
A restructuring plan for Gamesa is in place, according to the company, and expected to help stem losses there and bring the division back into the black by 2026.
The improved quarterly results reflect "the continued strong demand for our energy transition technology as well as initial successes in stabilizing the wind business," said Siemens Energy chief executive Christian Bruch. "Against the backdrop of this positive development, we have raised our outlook."
The company had previously forecast growth in turnover during 2024 of 3% to 7%, but raised those expectations to 10% to 12%. That change adds billions in expected revenue.
Margins are also expected to be somewhat more favourable.
Siemens Energy, however, left its annual bottom line profit target unchanged at €1 billion.