Siemens Energy weighs spin-off of 'Transformation of Industry' unit, Manager Magazin reports (updated)

Siemens Energy AG

18/06/2026 10:49

Adds context in paragraph 5-6, details from report in 2 and 8
June 18 (Reuters) - Siemens Energy ENR1n.DE is considering spinning off its "Transformation of Industry" division, which makes compressors and steam turbines, Manager Magazin reported on Thursday.
According to the magazine, an internal document showed the group's strategists concluding that, in the long term, a split would generate higher margins and greater value for shareholders.
"Siemens Energy routinely reviews its portfolio to ensure every business has the best strategic and financial conditions to compete, invest, and grow over the long term," the company said in a statement.
It said it was assessing the best long-term setup to accelerate the growth journey for its Transformation of Industry business, but that no decisions had been made.
Shares in Siemens Energy extended earlier gains to trade up 5% following the report.
The division, which Siemens Energy says is the largest maker of industrial steam turbines and generators and the second-largest maker of compressors, had revenue of €2.7 billion during the six months to end-March. That was 13.5% of €20 billion in group sales.
It employs 17,000 people.
Siemens Energy is considering, as a first step, divesting around 60% of the shares in the division, with a spin-off or initial public offering being conceivable, the magazine said. The company would retain the remaining 40% itself.
Under the most optimistic scenario, which assumes additional investment from a new group of owners, the division could increase its annual turnover by more than three-quarters by 2031 compared with 2025, to between €10 billion and €11 billion, with profit roughly tripling to between €1.6 billion and €1.8 billion, the magazine said, citing the internal document.

(Reporting by Linda Pasquini and Christoph Steitz, Editing by Matthias Williams, Kirsten Donovan)
((linda.pasquini@thomsonreuters.com; +48 58 7785261;))