Siemens Energy is preparing to spin off Transformation of Industry, a 5.7 billion-euro ($6.66 billion) revenue business, into an independent industrial energy solutions company, the company said Tuesday.
The separation would give Transformation of Industry more freedom to grow, including by bringing in outside investors or pursuing a capital markets deal.
Siemens Energy intends to explore a new ownership structure after the legal and operational separation, with the longer-term aim of deconsolidating the business while retaining a meaningful minority stake.
Transformation of Industry employed about 17,000 people and generated 5.7 billion euros of revenue in fiscal 2025, with an 11.3% profit margin, according to Siemens Energy.
The business supplies technologies including industrial steam turbines, compressors, hydrogen electrolyzers, generators and motors, as well as maritime and subsea equipment, serving industrial customers globally.
"Transformation of Industry has developed successfully over the past several years and is now a profitable, high-growth business. We see the potential for further profitable growth if we can accelerate the business's continued development," said Christian Bruch, President and Chief Executive Officer of Siemens Energy.
The standalone structure could help Transformation of Industry respond faster to markets including oil and gas, chemicals, process industries, paper, cement and maritime, the company said.
About 50% of Transformation of Industry's revenue comes from services, providing recurring earnings, while more than 85,000 installed units give the business a broad base for international expansion.
The business will initially operate under Siemens Energy's future Omterra brand once launched, with major German sites in Duisburg, Erlangen, Gorlitz, Muelheim an der Ruhr, Nuremberg, Erfurt, Hamburg, Leipzig and Berlin.
Transformation of Industry also operates sites across Europe, the US, India, China, Brazil, and Saudi Arabia.