Siemens Energy Sees More Opportunities Than Risks in the U.S.

Energy technology company remains optimistic despite potential U.S. tariffs and continues to project strong growth.

Munich. Siemens Energy, a leading energy technology company, remains optimistic about its prospects in the U.S. despite looming tariff disputes. “Not everything will be positive, but I see more opportunities than risks in North America,” said CEO Christian Bruch on Wednesday.

The company is currently assessing the potential impact of the proposed tariffs on each of its products. However, in most existing contracts, tariff costs can be passed on to customers. Additionally, Siemens Energy benefits from a strong local supply chain in the U.S., which helps mitigate risks.

The American market remains highly attractive. “We are witnessing extraordinary growth dynamics in the U.S.,” Bruch stated. The country is the world’s largest electricity market, with numerous new power plants and data centers under construction. “We are investing in the U.S. and continuing to hire employees,” he added.

Ongoing Struggles at Siemens Gamesa

Siemens Energy’s overall business remains solid, despite persistent challenges at its wind power subsidiary, Siemens Gamesa. In the first quarter of the fiscal year, which began in October, the company reported an 18.4% revenue increase to €8.9 billion and an operating margin of 5.4% before special items. These results exceeded the company’s full-year targets. However, Bruch cautioned that energy sector performance cannot simply be extrapolated from one quarter to an entire year, reaffirming the company’s annual forecast.

The company had faced a crisis primarily due to significant losses in its wind energy division. In the fall of 2023, Siemens Energy sought government-backed guarantees to manage its high order backlog. Since then, the company has made significant progress in stabilizing its operations.

Between October and December, Siemens Energy reported a net profit of €252 million. This positive result came despite continued, though slightly reduced, operational losses at Siemens Gamesa. The company’s other three divisions, including gas power and grid transmission technology, performed strongly, helping offset the challenges in wind energy.

For the full fiscal year, Siemens Energy expects revenue growth of 8% to 10% on a comparable basis and an operating margin of 3% to 5% before special items. The main challenge remains Siemens Gamesa, which is projected to post a loss of approximately €1.3 billion before special items.