Tag #Gas Turbines

What were the primary causes of Siemens Energy's dramatic stock price drop in late 2023, and what were the immediate consequences?

Siemens Energy, spun off from Siemens AG during the Covid-19 pandemic, experienced a dramatic stock price decline of over 70% between June and October 2023 due to increased failure rates of Gamesa's onshore wind turbines and resulting cost overruns. This followed a period of significant growth fueled by rising demand for clean energy but hampered by unforeseen inflation and fixed-price contracts. The company now faces challenges in delivering existing contracts profitably.