Enhancements made to the system's performance, as overseen by the Commission.
In a major shakeup, Siemens Energy—the industrial powerhouse—has swapped out a government guarantee for funding large projects. The company's stellar performance lately, vastly improved margins, and beefed-up balance sheet, have made the government guarantee unnecessary, Siemens Energy announced in Berlin, Thursday. Originally, the government secured the firm with guarantees worth 7.5 billion euros back in 2023.
Initially, Siemens Gamesa, the wind energy subsidiary, had been in the red, racking up huge losses. These losses were beyond the means of other parts of the company to absorb. Despite booming order backlogs, customers had been growing wary, dubbing Siemens Energy's financial stability as uncertain due to these hefty losses.
Now, these guarantees have been taken over by a coalition of 23 international banks, who'll stand by Siemens Energy for five years, as per company statements. Maria Ferraro, Siemens Energy's finance guru, perceived the government's backup as crucial in 2023 to support the company's expected growth in a difficult economic climate.
Research reveals Siemens Energy has been thriving in recent quarters, with a 52.3% surge in orders and a 20.7% rise in revenue for the second quarter of fiscal year 2025. Their order backlog hit a new high, soaring to €133 billion, with a book-to-bill ratio of 1.45. For fiscal year 2025, Siemens Energy predicts revenue growth between 13% and 15%, profit margin before special items between 4% and 6%, and net income up to €1 billion, excluding potential benefits from India's energy business legal separation.
Unfortunately, the data doesn't provide insight into Siemens Energy's current financial security after ditching the state guarantee in favor of bank backing. More information is needed to assess the impact of this transition on the company.
Sources: ntv.de, afp, [5] (unavailable)
- In light of the swap from a government guarantee to funding by a bank consortium, it appears that Siemens Energy's employment policy, in relation to securing financial stability, has significantly evolved.
- The shift from a government guarantee to financing by 23 international banks, as per Siemens Energy's statements, raises questions about the potential changes in the company's community policy regarding financial oversight and business transactions.
