Siemens Energy, the German multinational conglomerate, reported a significant fourth-quarter net loss of €870 million ($946.5 million), underlining the challenges faced by its wind-turbine subsidiary, Siemens Gamesa. The loss marks a sharp downturn from the previous year’s profit and reflects broader issues within the renewable energy sector.

The company’s financial struggles were further highlighted by a decrease in revenue to €8.52 billion, down 2.5% from the prior period, and a reduction in orders which fell to €10.58 billion, representing a 7.8% decline. The downturn in performance is primarily attributed to operational difficulties at Siemens Gamesa, which has been grappling with increased costs and competitive pressures.

In light of these challenges, Siemens Energy has laid out a plan aimed at reinforcing its balance sheet. The company remains optimistic about its long-term prospects despite the current setbacks. Executives at Siemens Energy are confident that Siemens Gamesa will achieve a break-even point by the fiscal year 2026. Additionally, they have projected an ambitious net profit target of up to €1 billion for the fiscal year 2024.

Siemens Energy’s forward-looking strategy indicates a commitment to weathering the present difficulties while focusing on future profitability and stability within the renewable energy market. The company’s resilience and proactive measures may provide some reassurance to investors and stakeholders concerned about the recent financial results.