Siemens Energy said it has begun evaluating a strategic separation of its Transformation of Industry (ToI) unit, a move aimed at sharpening focus on its higher-growth power-generation and grid businesses amid surging electricity demand.
The industrial unit, which employs about 17,000 people, generated €5.7 billion in revenue during fiscal 2025—up from €5.1 billion a year earlier—and accounted for roughly 15% of Siemens Energy’s total sales. Profit before special items rose 70% to €646 million, while free cash flow reached €686 million. The unit’s order backlog stood at about €8 billion at the end of the fiscal year.
Siemens Energy cited structural differences in the business cycle of the ToI unit compared with its other divisions, noting competition for investment within the group despite the unit’s strong performance. The separation is not driven by underperformance but rather by the need to prioritize faster-growing segments such as Gas Services and Grid Technologies, which benefit from rising demand for electricity from data centers, AI infrastructure, and energy-intensive industries.
The company is assessing various ownership structures for the spin-off, including bringing in external investors or pursuing a capital-markets transaction such as an initial public offering or a majority stake sale, while retaining a minority interest. Siemens Energy raised its 2026 outlook in May, projecting free cash flow before tax of around €8 billion and net income of roughly €4 billion.
Shares of Siemens Energy fell 0.3% in early trade on Wednesday, underperforming the broader DAX index, which declined 0.2%.
