- Record orders but still in the red. In Q3 FY2025 Siemens Energy reported its highest quarterly order intake ever, with Siemens Gamesa contributing €4.89bn of orders (book‑to‑bill 1.95) but a segment loss of €425m and revenue of €2.51bn. Management said the record was driven by two Baltic Sea offshore deals worth ~€1.8bn and ~€1.5bn; sales activities began for the 5.X successor SG 7.0‑170. p3.aprimocdn.net
- Group outlook improves; wind still loss‑making. Siemens Energy raised guidance for FY2025 and now sees up to ~€1bn net profit, but it expects Siemens Gamesa to post a ~€1.3bn loss this year. Financial Times
- Big offshore wins. Siemens Gamesa secured conditional agreements for 63 SG 14‑236 DD turbines at Skyborn’s Gennaker (up to 976.5 MW, German Baltic) and 26 SG 14‑236 DD at Ocean Winds’ BC‑Wind (Poland). Skyborn Renewables
- UK pipeline add. In late 2024 Siemens Gamesa clinched a ~£1bn turbine order (64 × SG 14‑236 DD) for ScottishPower’s East Anglia TWO (960 MW). Reuters
- Onshore reboot, mixed signals. After halting sales of the 4.X/5.X platforms in 2023, Siemens Gamesa celebrated its first 4.X order post‑relaunch in mid‑2025—but a 5.X blade “liberation” was reported at a Finnish site in August. Recharge News
- Safety incidents tracked. Earlier, a 22‑ton blade detached from a 4.X turbine at Norway’s Odal Vind (April 2024), prompting shutdowns and inspections. Reuters
- Restructuring deepens. Siemens Energy launched a wind division overhaul (aim: break‑even in FY2026, maintain onshore focus on Europe & the US, ramp offshore at Cuxhaven, Aalborg, Le Havre) and announced a leadership change (Vinod Philip taking over wind on Aug 1, 2024). Siemens Energy
- Job cuts & Spanish factory measures. A plan to cut ~4,100 jobs (~15%) began in 2024; in 2025 the firm proposed an ERTE/ERE affecting ~250 people at its Ágreda (Soria) onshore nacelle plant amid low activity on 4.X/5.X. Reuters
- Portfolio pruning. Siemens Energy agreed to sell Gamesa Electric’s power‑electronics unit to ABB (closing expected 2H2025) and to divest 90% of its India/Sri Lanka wind unit to a TPG‑led group. Reuters
- Supply chain hedging. Siemens Gamesa is talking to Chinese magnet makers about building in Europe and signed a new magnet‑supply deal with Japan’s TDK, seeking resilience in rare‑earths. Reuters
- US manufacturing signal. The company has looked at restarting a nacelle plant in Kansas as IRA‑era incentives pull production stateside. Reuters
- Policy backdrop. The EU opened a Foreign Subsidies Regulation probe into Chinese wind OEMs competing in several EU markets, a move that could influence procurement choices facing European developers. WindEurope
1) Financial picture: record orders, stubborn losses
Siemens Energy’s Q3 FY2025 release framed a tale of two realities. On the upside, orders hit €16.6bn group‑wide, propelled by €4.89bn at Siemens Gamesa—largely from two major Baltic offshore turbine packages. The wind unit’s book‑to‑bill reached 1.95 and backlog €38bn. On the downside, Siemens Gamesa still posted a €425m quarterly loss, reflecting ongoing onshore quality remediation and offshore ramp‑up costs. The group reiterated an improved FY2025 outlook, adding that it had lifted the dividend ban after exiting the German federal backstop guarantee. p3.aprimocdn.net
Meanwhile, the Financial Times reported Siemens Energy now expects up to ~€1bn net profit in FY2025, with wind still the underperformer: Siemens Gamesa is projected to lose ~€1.3bn this fiscal year even as revenue grows. The delta underscores how much the strong Gas Services and Grid Technologies segments are carrying the group while the wind business digests its fix‑and‑reset. Financial Times
2) Offshore momentum: Baltic Sea & UK deals
Two headline wins reinforced Siemens Gamesa’s offshore franchise in Europe:
- Gennaker (Germany) — Skyborn Renewables executed a turbine supply and long‑term service package for 63 × SG 14‑236 DD (conditional on notice‑to‑proceed), positioning what could be the largest wind farm in the German Baltic at up to 976.5 MW. Skyborn Renewables
- BC‑Wind (Poland) — Ocean Winds selected Siemens Gamesa for 26 × SG 14‑236 DD with service, targeting first power in 2028. Ocean Winds
These added to late‑2024’s UK win: East Anglia TWO (960 MW) with 64 × SG 14‑236 DD and a blade‑manufacturing boost for Siemens Gamesa’s Hull (UK) factory. Reuters
3) Onshore reset: relaunches, incidents, and the 5.X successor
The onshore turnaround remains a multi‑year job. Sales of 4.X/5.X were halted in 2023 after serial defects in bearings/blades; Siemens Energy quantified the remediation in 2023 and set a multi‑year fix‑plan. In mid‑2025 Siemens Gamesa notched its first 4.X order since the relaunch, a symbolic milestone for the platform refresh. Siemens Energy
But the legacy reliability cloud hasn’t fully cleared. In August 2025, a 5.X blade “liberation” at a Finnish wind farm triggered a fresh investigation. Earlier, a 22‑ton blade from a 4.X turbine detached at Norway’s Odal Vind (April 2024), leading to temporary shutdowns. Such incidents keep warranty, liability and reputational risks in focus until the fleet is retrofitted and the successor model is established at scale. Recharge News
The Q3 FY2025 filing confirms sales activities for the 5.X successor, SG 7.0‑170, have begun—critical to rebuilding onshore intake with a redesigned product while legacy fixes proceed. p3.aprimocdn.net
4) Restructuring and leadership: “fix, focus, and ramp”
Siemens Energy’s 2024 plan formalized the wind unit’s next phase:
- Target: break‑even in FY2026, then a “double‑digit” operating margin thereafter.
- Focus markets (onshore): Europe and the US; new business in other geographies only when economics warrant.
- Offshore: ramp factories at Cuxhaven (DE), Aalborg (DK), Le Havre (FR).
- Leadership: Vinod Philip took charge of the wind division from Aug 1, 2024, succeeding Jochen Eickholt. Siemens Energy
Alongside process changes, Siemens Gamesa announced ~4,100 job cuts (~15%) in 2024, with further site‑specific adjustments in 2025—most visibly at Ágreda (Soria), its only onshore nacelle plant in Europe, where an ERTE/ERE was proposed for ~250 workers as 4.X/5.X activity sagged. Reuters
5) Portfolio pruning and capital discipline
Two notable transactions aim to simplify the portfolio and free up resources:
- Power electronics to ABB — ABB agreed to buy Gamesa Electric’s converter/power electronics business (closing expected 2H2025). Reuters
- India/Sri Lanka wind unit carve‑out — A TPG‑led group will acquire 90% of the local wind business (two plants, ~1,000 employees), while Siemens Energy keeps some local staff and positions the venture as a cost‑effective supplier to its global chain. Reuters
These moves fit a strategy of concentrating on core markets and technologies where Siemens Gamesa believes it can price for risk and defend margins.
6) Factories & supply chain: hedging risk, localizing content
Supply security is a top theme across wind OEMs. Siemens Gamesa is in talks with Chinese permanent‑magnet suppliers about European manufacturing, and it inked a magnet deal with Japan’s TDK—steps meant to dilute single‑country risk in rare earths. In the US, the company has explored restarting a nacelle plant in Kansas, aligning with IRA‑driven local‑content economics. Reuters
7) Policy & competition: Brussels turns the screws
The European Commission in April 2024 opened the first Foreign Subsidies Regulation probe targeting Chinese wind OEMs competing in five EU markets. That process, combined with developer and political scrutiny over critical infrastructure, is already shaping supplier choices and could tilt upcoming awards. WindEurope
What it means (quick take)
- Offshore remains the growth engine. The Baltic and UK wins show Siemens Gamesa still commands major projects; the SG 14‑236 DD looks like the commercial spearhead while next‑gen offshore machines mature. Reuters
- Onshore credibility is rebuilding—but fragile. The 4.X relaunch and 5.X successor are essential, yet blade incidents keep warranties, cash, and reputation exposed until retrofits and new‑build reliability are proven in the field. Recharge News
- Turnaround math is tight. Even with record orders, the unit is still loss‑making; break‑even in FY2026 assumes disciplined bidding, flawless execution, and no fresh quality surprises. Portfolio trims (ABB deal, India carve‑out) and job cuts help, but the heavy lifting is in product reliability and project delivery. Siemens Energy+2Reuters
- Supply chain and policy are wild cards. EU trade enforcement and rare‑earth localization could reshape cost curves—and supplier rosters—over the next 12–24 months. WindEurope
Sources
- Siemens Energy Q3 FY2025 earnings release (orders, losses, Baltic deals, SG 7.0‑170, dividend update). p3.aprimocdn.net
- Financial Times on FY2025 group profit outlook and Siemens Gamesa’s expected loss. Financial Times
- Project awards: Skyborn Gennaker (Germany) and Ocean Winds BC‑Wind (Poland). Skyborn Renewables
- UK: ScottishPower East Anglia TWO turbine order. Reuters
- Onshore incidents & relaunch: Recharge on 4.X order resumption and 5.X blade incident; Reuters on Norway blade loss. Recharge News
- Restructuring & jobs: Siemens Energy strategy/leadership update; Reuters on 4,100 job cuts; Cinco Días on Ágreda measures. Siemens Energy
- Portfolio actions: Reuters on sales to ABB and TPG‑led group. Reuters
- Supply chain: Reuters on European magnet production talks and TDK; Reuters Events on Kansas nacelles. Reuters
- Policy: WindEurope on the EU FSR probe into Chinese wind OEMs. WindEurope
