Siemens Energy Plans to Spin Off Transformation of Industry Unit

By Adam Whittaker

Siemens Energy said it is preparing to spin off its transformation of industry division and is exploring potential ownership structures as it focuses on power generation and power transmission.

The German maker of energy equipment is reporting record orders and bumper profits amid a burgeoning U.S. data centre sector. But as growth in its gas turbines and power transmission businesses accelerates, the transformation of industry unit is struggling to compete for capital, the company said. The hope is that a separation will give the business more flexibility and growth opportunities.

Siemens Energy said late Tuesday that the business will initially operate under its future brand, Omterra. Siemens Energy said it could bring in external investors or undertake a potential capital markets transaction, and plans to deconsolidate the business while maintaining a meaningful minority stake.

The transformation of industry unit works with industrial clients to operate their power facilities. It works on industrial steam turbines, compressors, electrolyzers for hydrogen production, generators and motors across the oil and gas, chemicals, paper, cement and maritime sectors. These are separate markets from the rest of Siemens Energy and require more flexibility to work with customer needs, Siemens Energy said.

The transformation of industry employs 17,000 workers and reported 5.7 billion euros in revenue, equivalent to $6.66 billion, with an 11.3% profit margin in its 2025 fiscal year. By comparison, Siemens Energy employs more than 100,000 people and in 2025, its gas services unit reported revenue of over 12 billion euros and its grid technologies unit reported more than 11 billion euros.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

August 26, 2026 01:48 ET (05:48 GMT)