Siemens Gamesa reported orders amounting to €665 million in the third quarter of FY 2024. As expected, this represents a significant decline compared to the strong performance in the same quarter of the previous year, when orders totalled €7.4 billion. The drop in onshore orders was influenced by a temporary halt in sales activities for the 4.X and 5.X turbines.
Additionally, the offshore and service businesses had secured exceptionally large orders in the prior year, including a single offshore order worth €2.3 billion. The order backlog decreased to €37 billion.
Revenue increased to €2.6 billion, with growth across all business segments, particularly in the offshore sector. This growth partly reflects a reduced basis of comparison, as the prior-year quarter's revenue was affected by a reversal related to the issues mentioned below.
Profit before special items remained negative, at €(449) million, which was anticipated. The profit margin before special items was (17.5)%, an improvement from (124.1)% in the prior-year quarter. The ongoing challenges include project margins affected by higher planned costs due to known quality issues, increased product costs, and ramp-up challenges in the offshore segment, which also heavily impacted the previous year's quarter. Additionally, the recent quarter's profit was negatively impacted by the standard annual updating of statistical models used to evaluate the entire wind turbine fleet. However, changes in estimates for new, existing, and potential agreements with customers in major projects had an offsetting effect.
For the full year, Siemens Gamesa expects comparable revenue growth of 10% to 12% and a negative profit before special items of up to €2.0 billion, slightly revised from the previous estimate of around €2 billion.
