Siemens Energy experienced a notable surge in its stock price, climbing as much as 13% on Wednesday following the announcement of an upward revision to its annual forecast and a leadership transition within its wind turbine division amidst what it described as “comprehensive restructuring measures.”
In an official statement, Siemens Energy disclosed that Jochen Eickholt, CEO of Siemens Gamesa, had communicated his decision to step down from his role effective July 31, with Vinod Philip slated to assume the position. Christian Bruch, CEO of Siemens Energy, acknowledged Eickholt’s pivotal role in initiating organizational reforms within Siemens Energy amidst challenging circumstances, clarifying that quality issues predating Eickholt’s tenure were being addressed.
Siemens Energy further outlined a series of restructuring initiatives and strategic steps aimed at bolstering operational margins, particularly within its wind energy segment, attributing its revised forecast to robust demand for power grid equipment and improved stability in the wind business.
The updated guidance now anticipates a comparable revenue growth ranging between 10% and 12% for the fiscal year, with a profit margin before special items projected to fall between negative 1% and positive 1%. This marks a significant upward adjustment from previous forecasts of revenue growth between 3% and 7%, and profit margins ranging from negative 2% to positive 1%.
Despite the substantial increase in stock value, Siemens Energy’s shares closed up 12.8%, indicating a slight retreat from earlier highs during the trading session.
During an interview with CNBC’s “Squawk Box Europe,” CEO Christian Bruch underscored the positive performance of Siemens Energy in the recent quarter, citing encouraging order momentum within the energy sector. However, he cautioned that the company remained focused on addressing lingering quality concerns, particularly in the wind energy domain.
Bruch emphasized Siemens Energy’s commitment to both onshore and offshore energy projects, with a strategic emphasis on enhancing its offshore capabilities. He highlighted ongoing efforts to streamline operations and prioritize high-impact initiatives within the offshore segment to drive future growth and profitability.
