Siemens Energy CEO: Spinning Off Gamesa Wind Division is Feasible—Contingent on Profitability Milestones

Christian Bruch, CEO of Siemens Energy, has acknowledged that the spinoff proposal for Siemens Gamesa, the company’s wind turbine division, represents a legitimate strategic consideration. However, he emphasized a critical caveat: the business must first establish stable operations and achieve profitability targets before any separation can be viable. The proposal, put forward by activist investor Ananym Capital in December 2024, suggested that Gamesa could potentially be valued at $10 billion following a spinoff and could deliver investor returns of up to 60%.

The Feasible Path Forward: Establishing Profitability First

Bruch stated that while the spinoff concept merits serious consideration, the timing is premature. “This is a very valid question,” he acknowledged, but stressed that the business needs to “clearly move toward achieving double-digit profit margins” before such a strategic move becomes advisable. At the current stage, the priority remains establishing stable operations and demonstrating consistent profitability. Siemens Gamesa posted an operating loss of 1.36 billion euros ($1.6 billion) in 2025, though the company targets breakeven status this year and has set an ambitious goal of reaching a 3%-5% operating margin by 2028.

Bruch emphasized that discussing a spinoff remains premature “before these foundational goals are achieved.” The CEO’s stance reflects a pragmatic approach: unlocking shareholder value through a spinoff is feasible, but only once the business has proven its operational viability and profitability potential.

Replicating Success: The Grid Division as a Roadmap

To illustrate his conviction that Gamesa’s turnaround is achievable, Bruch pointed to Siemens Energy’s grid division as a compelling precedent. This segment has undergone a dramatic transformation over a four-year period—profit margins expanded from 3.6% in 2022 to 15.8% in 2025. This operational excellence has contributed to the parent company’s stock price surging over tenfold during the 2024-2026 period, establishing the grid business as the most lucrative profit driver within the group.

“Looking back to 2020, no one was optimistic about the grid business,” Bruch reflected. “Nobody believed it would become the company’s most profitable engine. Yet just four years later, it achieved a genuine turnaround.” He argued that offshore wind operations possess similar transformation potential. “Can the offshore wind business achieve a comparable turnaround? The answer is absolutely yes. But I haven’t observed the concrete evidence of it yet. That’s why I believe timing and conditions are the paramount issues,” he concluded.

Capitalizing on AI-Driven Infrastructure Demand

Beyond the wind division dynamics, Bruch revealed Siemens Energy’s strategic pivot toward artificial intelligence infrastructure. As the United States accelerates data center construction to meet AI technology power demands, Siemens Energy plans to invest $1 billion in expanding US manufacturing capacity for grid components and gas turbine parts. This investment signals the company’s confidence in emerging growth opportunities and its commitment to capturing market share in the rapidly evolving energy infrastructure sector.

This expansion initiative positions Siemens Energy as a key infrastructure enabler for the AI era, diversifying revenue streams beyond the traditional wind business and strengthening the company’s overall growth profile while Gamesa works toward its profitability targets.