ENR: TI spin-off reportedly under consideration, though no quick timeline

Research evidence excerpt

ENR: TI spin-off reportedly under consideration, though no quick timeline

EQUITY RESEARCH QUICK TAKE

RBC Europe Limited

Colin Moody, CFA (Analyst)

Mark Fielding (Analyst)

June 18, 2026

Siemens Energy AG

TI spin-off reportedly under consideration, though no quick timeline

XETRA: ENR | EUR 160.90 | Outperform | Price Target EUR 200.00

Sentiment: Positive

Manager Magazin has indicated in an unconfirmed report that Siemens Energy is exploring a TI spin-off/IPO. We would welcome

this, though would not expect a speedy resolution given operational hurdles and a slow path to full disposal.

What's happened: Manager Magazin has reported that Siemens Energy is actively considering a spin-off of the Transformation of

Industries business (TI), which accounts for c.10% of our 2028E EBITA (e.g. after allowing for Gamesa profit normalisation). Under

such circumstances, Siemens Energy would expect to divest 60% of its ownership, and retain 40%, with internal processes towards

separation (e.g. central functions de-linking) expected to take 36 months. The article notes that merging TI with competitors might

also be an option.

Rationale: The article notes TI under current plans is relatively underinvested in given the better returns at GT and GS. The article

cites discussions around a wholly-owned TI growing from €5.7bn revenues & €640m of EBITA in 2025, to €7.6bn revenues and

€1.1bn of EBITA in 2031. In contrast, an independent TI would be expected to have €10-11bn of revenues and €1.6-1.8bn of

EBITA by 2031. The profit uplift would come from growth in newly invested areas such as inductive heating, as well as some cost

streamlining/brand license fee removal.

Financial implications: We estimate deconsolidating TI would have a c. 60bps EBITA margin uplift from 2028E onwards (more