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Siemens Energy to Spin Off Transformation of Industry Division to Focus on Power Generation, Grids

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Siemens Energy to Spin Off Transformation of Industry Division to Focus on Power Generation, Grids

German energy technology company Siemens Energy (ENR.F) started plans to spin off its Transformation of Industry division to focus on power generation and power transmission.

The company said late Tuesday it plans to establish the division as a standalone entity, which will initially operate under the company's future brand, Omterra. As a second step, Siemens Energy would explore a new ownership structure, including bringing in external investors and potentially pursuing a capital markets transaction, while retaining a "meaningful" minority stake in the future entity.

Bloomberg News reported earlier the same day, citing sources, that the division has drawn interest from buyout firms including CVC Capital Partners (CVC.AS), EQT (EQT.ST), Bain Capital, Brookfield and KKR. The sources also reportedly said any stake sale could value the business at more than 10 billion euros.

The division, which manufactures industrial steam turbines, compressors and electrolyzers, among other products, generated revenue of 5.7 billion euros in 2025, with an 11.3% profit margin. It employs 17,000 people and has key manufacturing sites in Germany and other countries across Europe, as well as in the US, India, China, Brazil and Saudi Arabia.

Siemens Energy said the Transformation of Industry division serves different markets than the rest of the company, including oil and gas, chemicals, paper, cement and maritime, which are faster-moving, more transactional and shaped by different customer needs. As a standalone entity, it could respond more quickly to these markets while competing more effectively for investment.

"If we don't change our structure, we limit what Transformation of Industry can achieve. Our current investment focus is on power generation and power transmission, with higher immediate payback," President and Chief Executive Christian Bruch said.

Siemens Energy's shares were marginally lower during early trading in Frankfurt.

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