We heard from Siemens Energy in terms of surging energy demand from AI data centers has helped the company's power grid division post its highest ever quarterly revenue with the companywide sales for the fourth quarter coming in at nearly 10 and a half billion euros. The firm has upgraded its midterm growth and profitability targets as well, now expecting its profit margin before special items to rise to as much as 16% in 2028. That's up on its previous upper bound of 12%. In terms of their Frankfurt listed shares, they rose nearly 2 and a half percent on the news, while its main listing has more than doubled in value this year, making the company the sixth largest in Germany. So, let's discuss what's going on with this business. The CEO Christian Bruch is joining us this morning. Christian, always great to have you on the show. Looking at the full year, it seems that you're posting a very decent performance in the fiscal year of 2025. I would like to get your thoughts in terms of what do you think were the main reasons behind this performance.
Yeah, first of all, good morning. Thanks very much for having me. It's always a pleasure. Um, yeah, 2025 has been a very successful year for us and we achieved all our targets. We overachieved certain targets which we have set ourselves and keep in mind we upgraded our targets throughout the fiscal year 2025. Honestly, um, it is the base of it is a lot of hard work of the team at Siemens Energy. I mean, we see a good electricity market. Uh, we have very successful products positioned and the organization has been tremendously good in working off also a big backlog. We have been growing revenue by 15% this year and you're on an organization like ours which at the end physically produces something that's not an easy task but the team has been awfully disciplined working through the matters and this allowed us really to drive double-digit margins in all the business areas except wind and wind was really this year about stabilizing it and this is also what the team has achieved driving productivity in the factory. So I'm super proud of the team at Siemens Energy.
Let's discuss what's happening in wind then as you look at the next year and we know how much pressure there's been in this part of the business. You talked about how it has been about stabilizing it in 2025. But what is the outlook for 2026?
Look, it's a little bit the tale of two cities. Um, on if you look on onshore, it was really fixing the quality issues. We are back in the market with the products now. Um, however, obviously you don't see big new unit sales yet. This is still to come. So that is really about fixing the things and stabilizing in offshore. It was very much about ramping up the factories. There is a big backlog in offshore which gives us the work for last year, next year and so forth. Um, and there it was really making sure that the factories bring out all the nacelles and blades which we need to produce and just to give you a feeling we have in Cuxhaven which is our large offshore nacelle factory in Germany we have increased the output by 30% in the last year compared to the year before and this shows you that the productivity measures really come through and these were the two main elements which helped now the wind business to stabilize the business.
I would also like to look at shareholder returns. Looking at today's numbers, you're in a position to announce the return of dividend payments for the first time in four years. Walk us through a little bit more in terms of that decision and what shareholders can expect going forward.
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Bruch, C. (2025, November 14). AI bubble or not, we need more power - Siemens Energy CEO [Interview transcript]. CNBC International Live. CEOInterviews.AI. https://ceointerviews.ai/interview/1149057/
MLA
Christian Bruch. "AI bubble or not, we need more power - Siemens Energy CEO." CNBC International Live, 14 Nov. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1149057/.
BibTeX
@misc{bruch2025_1149057,
author = {Christian Bruch},
title = {AI bubble or not, we need more power - Siemens Energy CEO},
howpublished = {Interview transcript, CNBC International Live. CEOInterviews.AI},
year = {2025},
month = {nov},
url = {https://ceointerviews.ai/interview/1149057/},
note = {Speaker-attributed transcript with timestamps}
}
