Siemens Energy AG is working with Goldman Sachs to explore the sale of a substantial stake in its steam turbine business, a move aimed at bolstering its financial position. The company is reportedly seeking to raise between $500 million and $1 billion through this divestment, which could involve selling a minority or majority share to a private equity firm or another industrial player. This strategic move comes as Siemens Energy looks to streamline its portfolio and reallocate resources towards its more profitable and growth-oriented segments, particularly in the face of increased investment in the US power sector.
The decision to potentially divest part of its steam turbine unit aligns with Siemens Energy's broader strategy of optimizing its operations. The company has recently focused on expanding its presence in areas like gas turbines and grid technology, with a planned $1 billion investment in the US over the next two years to tap into surging power demand. This investment will expand existing facilities and build a new plant, creating around 1,500 jobs, primarily for gas turbines and transformer production.
This divestment strategy follows other recent financial maneuvers by Siemens Energy. In March 2025, the company sold 90% of its Indian and Sri Lankan wind turbine business to an investor group led by TPG, addressing the highly competitive landscape in that sector. Additionally, its former parent company, Siemens AG, announced plans in December 2024 to sell a 6% stake in Siemens Energy, valued at approximately €2.5 billion ($2.6 billion), to help fund its $10 billion acquisition of Altair Engineering Inc. These actions collectively demonstrate Siemens Energy's active management of its assets and financial structure to adapt to market dynamics and pursue strategic growth.
While this potential sale aims to strengthen the balance sheet, Siemens Energy has also been experiencing strong demand in other segments. Record gas turbine orders were booked in February 2026, driven by significant spending on data centers, with CEO Christian Bruch expressing confidence in continued demand. The company's shares have performed strongly, more than quadrupling in the year leading up to December 2024, despite some adjustments in voting rights due to transactions involving Goldman Sachs, which saw a decrease in their voting rights percentage from 9.60% to 9.13%.
