Siemens Energy plans standalone company for Transformation of Industry
Siemens Energy is preparing to separate its Transformation of Industry business into a standalone company as it seeks to give the division greater strategic flexibility and accelerate its growth.
The German energy technology group said it would begin the legal and operational separation of the business, with the longer-term objective of establishing an independent industrial energy solutions company.
A second step is expected to examine a new ownership structure, potentially involving external investors or a capital markets transaction. Siemens Energy intends to deconsolidate the business while retaining a meaningful minority stake to support its continued development.
Transformation of Industry employs around 17,000 people and generated €5.7 billion in revenue in fiscal 2025, with a profit margin of 11.3%.
The division supplies technologies to industrial customers seeking to improve efficiency, reliability and emissions performance. Its portfolio includes industrial steam turbines, compressors, hydrogen electrolyzers, generators and motors, as well as maritime and subsea technologies.
Siemens Energy chief executive Christian Bruch said Transformation of Industry had developed into a profitable, high-growth business and could achieve further growth with greater independence.
The company said the proposed separation reflects differences between Transformation of Industry and its other businesses. The division serves sectors including oil and gas, chemicals, process industries, paper, cement and maritime, where customer requirements and market dynamics can differ significantly from those in Siemens Energy’s core power generation and transmission businesses.
Bruch said Siemens Energy’s current investment priorities were focused on power generation and power transmission, where the company sees stronger immediate returns.
Creating a standalone business would give Transformation of Industry greater freedom to allocate capital and respond to changing market conditions, according to Siemens Energy.
The division is positioned to benefit from long-term trends including industrial electrification, energy efficiency, decarbonisation, digitalisation and growing demand for security of energy supply.
Transformation of Industry also has established positions in sectors such as oil and gas, process industries, data centres and maritime markets. Around 50% of its revenue comes from services, providing a recurring earnings base, while more than 85,000 installed units worldwide give the business an established international customer base.
The company being carved out will initially operate under Siemens Energy’s future Omterra brand once it is launched.
The planned standalone business has a substantial manufacturing footprint in Germany, including sites in Duisburg, Erlangen, Görlitz, Muelheim an der Ruhr, Nuremberg, Erfurt, Hamburg, Leipzig and Berlin.
Together, the German locations employ several thousand people, with additional manufacturing and operational sites across Europe, the United States, India, China, Brazil, Saudi Arabia and other markets.
Siemens Energy said the separation is intended to create an industrial energy solutions company with greater entrepreneurial flexibility and additional options for future expansion.
For Siemens Energy, the move would sharpen its strategic focus on power generation and power transmission, while allowing Transformation of Industry to pursue investment and growth opportunities more independently.
The proposed restructuring is therefore expected to create two businesses with clearer strategic priorities: Siemens Energy concentrating on the infrastructure needed to generate and transmit electricity, and the future standalone Transformation of Industry company focusing on industrial energy technologies and services.
