Investors have turned cautious on the company's projections after repeated setbacks at its Siemens Gamesa wind turbine business led to questions over its strategy of trying to serve broad swathes of the utility sector.
"The worst is over," Joe Kaeser said, adding that no new problems had emerged.
Siemens Energy, spun off from German engineering group Siemens (SIEGn.DE), opens new tab in 2020, last year reported quality issues on its most recent generations of onshore wind turbines, with the government eventually taking on vital project guarantees.
The crisis has raised doubts over whether the company, which also makes gas turbines and power transmission equipment, should hold on to the onshore wind turbine business.
"If there is no money to make, if there is no profit pool, why should you allocate resources into that business just because you want to save the world in 50 years," said Kaeser, who previously served as Siemens CEO, adding the business needed to be profitable to work.
Kaeser said that Siemens Energy management under Christian Bruch needed to review the level of functionality it promises to wind turbine clients without it becoming a major financial burden.
They also need to deliver on the promised turnaround of Siemens Gamesa, which is expected to break even in 2026, he said, adding no further structural change was needed at present.
"If the management is able to make good on the strategy they have presented to the board, it looks really, really good. In '26, '27 there should be a fascinating company not just by purpose but also by profitability," Kaeser said.
"But ... the jury is out because they haven't delivered."
(Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/3TN7SHH, opens new tab)
A couple of our past GMF stories here for reference: ECB, BlackRock
