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(Bloomberg) — Siemens Energy AG substantially hiked its mid-term financial targets on the back of demand for gas turbines and data center equipment as well as restructuring progress in its Gamesa wind turbine unit.
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The manufacturer sees returns before special items as high as 16% by fiscal 2028, up from a previous target of as much as 12%, Siemens Energy said Thursday. The company, which long struggled to overcome deep issues with malfunctioning onshore wind turbines, also boosted its outlook for revenue growth.
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Siemens Energy has profited from the AI boom by securing more orders for its transformers and circuit breakers deployed in data centers. Rising global energy needs have lifted demand for its gas turbines that offer robust margins. While the company’s shares have more than doubled this year on optimism around AI, Siemens Energy is still struggling to turn around its loss-making Gamesa wind-turbine unit.
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The company also detailed results for the fiscal fourth quarter ending in September. Revenue rose 9.7% to €10.4 billion ($12.1 billion). Profit at the grid technologies unit, which supplies data centers, jumped 71%, giving a return before special items of nearly 15%.
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The manufacturer still expects Gamesa to break even in 2026, though the division reported another operating loss during the fourth quarter as low-margin contracts weighed on the onshore business, Siemens Energy said. It also said costs associated with the ramp-up of offshore wind parks held back the result. US tariffs were another drag.
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For fiscal year 2026, Siemens Energy expects current favorable trends in the energy sector to continue, led by growing demand for electricity and modernization of infrastructure, benefiting all of the company’s business areas.
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It forecast comparable revenue growth, excluding currency translation and portfolio effects, of as much as 13% and a profit margin before special items between 9% and 11%.
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