Siemens Gamesa’s Q1 Net Loss Widens to €884 Million on Higher Service Costs

The October-December period revenue was up 9.8% YoY to €2 billion


Spain-based wind turbine maker Siemens Gamesa’s net loss widened to €884 million (~$971.9 million) for the first quarter (Q1) of the financial year (FY) 2023 compared to €403 million (~$443.2 million) year-over-year (YoY).

The company detected an upward trend in the failure rate of certain components that resulted in higher-than-expected warranty and service maintenance costs leading to the loss during the quarter.

Additionally, the economic performance during this period was severely impacted by the outcome of the evaluation of the installed fleet, mostly impacting the service business, the company said in a statement.

The wind turbine maker’s revenue for the period came in at €2 billion (~$2.19 billion), up 9.8% YoY mainly driven by the recovery of wind turbine generator (WTG) manufacturing and installation activity.

There was a 13% YoY growth in revenue from WTG production due to the recovery in offshore manufacturing.

Siemens said that the offshore activity was severely impacted during the quarter due to supply chain disruptions that created a shortage in components.

The company said that its revenue from onshore activity also remained impacted which resulted in a 10% YoY decline in manufacturing and a 40% YoY drop in onshore installation volumes.

GAMESA Q1 2023

The company’s order backlog remained stable €33.7 billion (~$37 billion) by the end of December 2022, with an order intake of €1.6 billion (~$1.75 billion), down YoY by 34.9% due to volatility of the offshore market.

Siemens currently has €17.3 billion (~$19.08 billion) or 52% of the order backlog in service with 70 GW of onshore and 13 GW of offshore wind orders under maintenance.

“The negative development in our service business underscores that we have much work ahead of us to stabilize our business and return to profitability. However, despite the extremely challenging macroeconomic and geopolitical context in which we find ourselves, we have seen progress in other areas, such as with our Siemens Gamesa 5.X platform, thanks to our Mistral program,” said Siemens Gamesa’s CEO Jochen Eickholt.

Siemens posted a YoY increase of 17.8% in revenue for the fourth quarter of 2022 at €3.3 billion (~$3.4 billion).

The wind turbine maker reported a net loss of €446 million (~$453 million) for the third quarter of 2022, up YoY by 42%.


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