Siemens Energy, the German energy company, has announced a net loss of 870 million euros ($946.5 million) for the fourth quarter of its fiscal year. This is a significant decline from the profit of EUR354 million in the same period last year. The net loss before special items comes in at EUR487 million.
Revenue for the quarter also dropped by 2.5% to EUR8.52 billion, while orders decreased by 7.8% to EUR10.58 billion.
The company attributes these challenges to its troubled wind-turbine business, which has overshadowed the strong performance and success of its other ventures. Siemens Energy anticipates breaking even at Siemens Gamesa by fiscal 2026.
Looking ahead, Siemens Energy forecasts a net profit of up to EUR1 billion for fiscal 2024. The profit margin before special items is projected to be between 1% and minus 2%. Comparable revenue growth is expected to range from 3% to 7%, with pretax free cash flow at approximately negative EUR1 billion.
To bolster its balance sheet, Siemens Energy is also planning disposals and portfolio transformation, which it believes will bring in proceeds ranging from EUR2.5 billion to EUR3 billion.
Overall, despite the setback in its wind business, Siemens Energy is focused on strengthening its position and remains optimistic about its future prospects.