MUNICH: Siemens Energy AG has raised its mid-term targets after demand for its grid technologies helped offset losses at its beleaguered wind turbine division.

Revenue is likely to grow at a high single-digit to low double-digit percentage, with a profit margin of 10% to 12% by financial year 2028 (FY28), the company said on Tuesday.

Siemens Energy had previously predicted a profit margin of 8% or above.

The company, which makes transformers and power lines, is turning the page on longstanding problems at its Gamesa wind turbine unit, where faulty wind turbines led to massive losses that overshadowed profits in its other businesses.

With a broad restructuring under way, the company confirmed that it still sees Gamesa breaking even in FY26.

In FY24, revenue rose by 13%, while net income was €1.335bil (US$1.4bil), partly driven by selling off assets.

Siemens Energy, which also produces and services gas turbines for power plants, said earlier it expected proceeds of around €3bil this financial year from such sales. Among these was its stake in an Indian joint venture and its high-voltage components unit, Trench.

Gamesa posted a loss of €1.78bil, before special items, in the 12 months through September, with Siemens Energy citing a temporary sales pause and restructuring costs that dragged on earnings. 

 - Bloomberg