Siemens Energy is preparing to carve out its Transformation of Industry business and turn it into a standalone company, in a strategic move that will allow the industrial energy unit greater freedom to invest, expand and pursue new ownership options.

 

The business employs around 17,000 people and generated €5.7 billion in revenue in fiscal 2025, with a profit margin of 11.3%.

 

Siemens Energy said the separation is aimed at creating an independent industrial energy solutions company with greater entrepreneurial flexibility and stronger growth prospects. As a second step, the company plans to explore a new ownership structure with the ultimate goal of deconsolidating the business, while retaining a meaningful minority stake.

 

“Transformation of Industry has developed successfully over the past several years and is now a profitable, high-growth business. We see the potential for further profitable growth if we can accelerate the business's continued development," said Christian Bruch, President and CEO, Siemens Energy.

 

The planned separation reflects a broader strategic focus at Siemens Energy on power generation and power transmission.

 

Transformation of Industry serves markets including oil and gas, chemicals, process industries, paper, cement and maritime — sectors that Siemens Energy says operate at a faster pace and have different investment and customer requirements from its core energy businesses.

 

Christian Bruch said the current structure is holding back the division’s potential. "If we don't change our structure, we limit what Transformation of Industry can achieve. Our current investment focus is on power generation and power transmission, with higher immediate payback.”

 

As an independent company, Transformation of Industry would have greater freedom to respond to its markets and pursue growth opportunities without competing internally for investment against Siemens Energy businesses growing at a faster rate.

 

Siemens Energy says Transformation of Industry is positioned to benefit from major trends reshaping global industry, including energy efficiency, industrial electrification, decarbonization, digitalization and growing demand for secure energy supplies.

 

The portfolio spans industrial steam turbines, compressors, hydrogen electrolyzers, generators and motors, as well as maritime and subsea technologies.

 

The business has particularly strong positions in oil and gas, process industries, data centers and maritime markets. Services account for roughly 50% of revenue, providing a significant base of recurring earnings.

 

More than 85,000 units are installed worldwide, giving the planned standalone company a substantial installed base from which to pursue further international growth.

 

The business has a major manufacturing presence in Germany, including facilities in Duisburg, Erlangen, Görlitz, Muelheim an der Ruhr, Nuremberg, Erfurt, Hamburg, Leipzig and Berlin.

 

Duisburg is the largest of these sites, with about 1,500 employees. Other sites employ hundreds of workers each.

 

The company also operates manufacturing and other facilities across Europe, the United States, India, China, Brazil, Saudi Arabia and other countries.

 

The carved-out business is initially expected to operate under Siemens Energy’s future Omterra brand once that brand is launched.

 

The planned separation marks a significant step in Siemens Energy’s effort to sharpen its portfolio around its core power-generation and transmission businesses.