Siemens Energy to spin off industrial business

Siemens Energy and Siemens Gamesa Renewable Energy will be united under a single name and brand umbrella: Omterra. The rebranding process is scheduled to begin later this calendar year and will be implemented in stages. (Image: Siemens Energy)

Siemens Energy has started the legal and operational separation of its Transformation of Industry business area, with the goal being to establish the business as a standalone entity and create an independent industrial energy solutions company. 

Transformation of Industry supports industrial customers around the world to operate their plants and processes more efficiently, more reliably and with lower emissions, said Siemens Energy. The portfolio covers a broad range of technologies including industrial steam turbines, compressors, electrolyzers for hydrogen production, generators and motors, as well as maritime and subsea technologies, among others.

In fiscal year 2025, the business had approximately 17,000 employees who helped generate revenue of €5.7 billion.

The future setup is intended to provide Transformation of Industry with greater entrepreneurial flexibility and additional options for further growth, said the company, ranging from bringing in external investors to a potential capital markets transaction. Siemens Energy intends to deconsolidate the business while retaining a meaningful minority stake to support the business’s continued development.

“Transformation of Industry has developed successfully over the past several years and is now a profitable, high-growth business,” said Christian Bruch, president and Chief Executive Officer of Siemens Energy. “We see the potential for further profitable growth if we can accelerate the business’s continued development.”

Greater strategic flexibility

Within the current group structure, Transformation of Industry competes for investment against businesses that are growing even faster. In addition, the business serves different markets than the rest of Siemens Energy. These markets – industries such as oil and gas, chemicals, process industries, paper, cement and maritime – are often faster-moving, more transactional and shaped by different customer needs, said Siemens Energy. As a standalone entity, the business is expected to be better positioned to respond at the pace these markets require.

“If we don’t change our structure, we limit what Transformation of Industry can achieve,” said Bruch. “Our current investment focus is on power generation and power transmission, with higher immediate payback.”

Transformation of Industry reportedly benefits from long-term growth trends such as energy efficiency and affordability, industrial electrification, decarbonization, digitalization and rising demand for security of supply. With strong positions in attractive markets such as oil and gas, process industries, data centers and maritime along with a broad technology and service portfolio, the business is well positioned to benefit from these long-term growth trends. A high service share of around 50% of total revenue provides stable, recurring earnings.

With more than 85,000 units installed globally, Siemens Energy said the future company has a solid foundation for further international growth.

The business to be carved out will initially operate under Siemens Energy’s brand, Omterra, once launched. As previously announced, Siemens Energy and Siemens Gamesa, will soon come together under the name Omterra in a process that will begin later this year. 

Transformation of Industry has a network of key manufacturing sites in Germany – including Duisburg (approximately 1,500 employees), Erlangen (700), Görlitz (650), Muelheim an der Ruhr (550), Nuremberg (550), Erfurt (550), Hamburg (250), Leipzig ( 200) and Berlin ( 150) – as well as in Europe, the United States, India, China, Brazil, Saudi Arabia and other countries.

Following this move, Siemens Energy said it plans to focus on power generation and power transmission.