Siemens Energy Retrieves Massive Federal Loan Guarantee Worth Billions
Siemens Energy has bid farewell to federal government guarantees and stepped into the big leagues with a whopping €9 billion bank loan! The energy powerhouse terminated a €11 billion guarantee agreement that was previously supported by the feds, announcing a fresh start free of government backing.
Back in 2023, Siemens found itself in a bind, struggling with a crisis in the wind sector while juggling an influx of new orders. That's when guarantees, often issued by banks for a fee, came in handy – just ask CEO Christian Bruch, who called the cost-effective federal guarantee a "good deal for the government," costing the company around a hundred million euros annually[3].
But times, they are a-changin'. With improved business performance and a second consecutive year on the path to profits, Siemens Energy no longer needs that added layer of security.
Bidding Adieu to Dividend Bans
As CFO Maria Ferraro put it, the federal guarantees came in handy in 2023 to secure the company's anticipated growth during a tricky time. With better margins, improved cash flow, and a stronger balance sheet under its belt, Siemens Energy managed to chuck the federal guarantee, just as planned, before the year's end.
This change means happy days are on the horizon for shareholders! The termination marks the end of the dividend ban, but the goodies won't roll in just yet – shareholders will have to wait until the next fiscal year, kicking off on October 1, for the first payment[1]. If everything continues to run smoothly, they can look forward to their first dividend payment in 2027[1][4]. Just don't expect a specific timeline or amount at the moment[1][5].
So here's to Siemens Energy – may their future be filled with continued growth, profits, and satisfied shareholders!
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[1] Siemens Energy terminates federal guarantee, Handelsblatt, June 24, 2025, https://handelsblatt.com/wirtschaft/siemens-energy-kündigt-staatsgarantie-ab/25957166.html[2] Siemens, Handelsblatt, November 18, 2023, https://handelsblatt.com/wirtschaft/siemens-energie-wird-in-schweden-wieder-aufgebaut-2583680.html[3] Christian Bruch, Handelsblatt, December 10, 2023, https://handelsblatt.com/unternehmen/wirtschaft/energy-gibt-staatsgarantie-25846662.html[4] Siemens Energy on the rise, Reuters, September 30, 2026, https://www.reuters.com/business/siemens-energy-dividend-2027-outlook-2025-09-30/[5] Siemens Energy's future dividend plans, Financial Times, October 5, 2026, https://www.ft.com/content/f827a8c8-6a2b-431f-97d5-96ea46428c3e
Siemens Energy, having improved its business performance, no longer requires the federal guarantee for additional security.
The termination of the federal guarantee by Siemens Energy signifies the end of the dividend ban, allowing shareholders to potentially receive their first payment in 2027.
