Siemens Energy is reviewing options for the future of its wind turbine operations, including a potential spin-off, as part of efforts to stabilise the business and return to profitability, according to CEO Christian Bruch and a media report.

The assessment will review the future direction of Siemens Energy’s wind business and its broader restructuring efforts in the context of operational and financial challenges at Siemens Gamesa, the company’s wind division. These challenges include quality issues, project delays, and cost overruns, the report said.

“We’re considering structural alternatives to support the turnaround strategy, while working to restore reliability, improve execution and rebuild our balance sheet,” Bruch said, the report said.

Due to ongoing issues in the wind division, Siemens Energy has incurred significant losses and has had to access external sources of financial support, while strengthening risk management and tightening cost controls. Problems related to onshore wind turbine designs have led to higher repair costs and delivery delays, negatively affecting the group’s overall performance, the report said.

Siemens Energy is also exploring new strategies to improve performance. The company is simplifying operations, becoming more selective about the projects it undertakes, and focusing on business segments expected to deliver higher and more stable returns, the report said.

The company has stated that it will not make any decisions regarding a potential spin-off until market conditions, regulatory factors and the outcomes of internal reviews are fully assessed, the report said.

The company is expected to provide further updates on its wind business as it continues efforts to stabilise other parts of its operations, such as gas services and grid technologies, which have shown more consistent performance. These efforts are expected to continue over the coming months as the restructuring process progresses, the report said.

The company has not provided a timeline for any decisions related to a potential spin-off and has stated that no binding commitments have been made at this stage. Any structural changes would require shareholder and regulatory approvals, along with detailed financial and operational planning before implementation, the report said.

Global wind turbine manufacturers are currently facing rising input costs driven by increased demand from electric utilities, adding pressure across the supply chain from manufacturers to customers, complicating restructuring efforts, the report said.

Siemens Energy has said it will continue to keep stakeholders informed throughout the reorganisation period. The company’s priorities include improving execution, rebuilding customer confidence and strengthening long-term financial sustainability, the report said.