Siemens Energy announced preparations to legally and operationally separate its Transformation of Industry division, a significant move designed to reshape the German energy technology group’s strategic focus. The division currently employs approximately 17,000 people and generated €5.7 billion in revenue in fiscal 2025.
Following the separation, Siemens Energy intends to establish the unit as an independent company and explore new ownership structures potentially involving outside investors or capital markets transactions. The parent company plans to maintain a meaningful minority stake while allowing the separated business greater autonomy in investment and strategic decisions. The move would enable Siemens Energy to redirect more capital toward its power generation and grid infrastructure operations.
Transformation of Industry provides industrial equipment and services including steam turbines, compressors, generators, motors, hydrogen electrolyzers, and maritime technologies to customers in oil and gas, chemicals, cement, data centers and shipping sectors. In fiscal 2025, the division reported an 11.3% profit margin before special items and comparable revenue growth of 13.5%. The company forecasted comparable revenue growth between 5% and 7% for fiscal 2026, with profit margins before special items projected between 11% and 13%.
Chief Executive Christian Bruch characterized the business as profitable and growing but noted it currently competes for investment capital with higher-growth Siemens Energy operations. Grid Technologies and Gas Services divisions are projected to achieve significantly faster growth rates. The proposed carve-out would allow Siemens Energy to concentrate on higher-growth power-sector businesses while maintaining Siemens Gamesa wind operations. Transformation of Industry will initially operate under the Omterra brand following its launch, with major manufacturing operations in Germany and facilities across Europe, the United States, India, China, Brazil and Saudi Arabia.
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