Siemens Energy Taps Goldman Sachs to Sell Majority Stake in Steam Turbine Unit

Siemens Energy is working with Goldman Sachs Group as it prepares to field offers for a majority stake in its steam turbine and compressor business, Bloomberg reported Aug. 24, citing people familiar with the matter. The German energy technology company's supervisory board met that week to weigh how to proceed with a divestment of the Transformation of Industry division.¹

What's on the Block

Siemens Energy describes Transformation of Industry as the world's largest maker of industrial steam turbines and generators and the second-largest maker of compressors. The division generated €2.7 billion in revenue in the six months ended March — 13.5% of the group's €20 billion in first-half sales — and employs 17,000 people.¹

Several private equity firms are said to be weighing bids, including CVC Capital Partners, EQT and Bain Capital, with Brookfield and KKR also exploring offers, according to Bloomberg. Any stake sale could be valued above €10 billion ($11.7 billion) — well above the roughly €8 billion ceiling an RBC analyst had estimated as recently as June, a gap that reflects how quickly buyer interest has built.¹ ²

From Spin-Off Talk to a Stake Sale

The Goldman mandate follows a June report by Manager Magazine, citing an internal document, that Siemens Energy's strategists had concluded a split would generate higher margins and greater shareholder value over the long term. That report described a possible first step of divesting around 60% of the division's shares via a spin-off or IPO, with Siemens Energy retaining the remaining 40%.¹

The board had weighed a full spin-off of the unit at a meeting roughly a week before the Goldman mandate became public, a prospect that weighed on the shares at the time. A majority-stake sale to a single buyer or consortium is now framed as a more surgical alternative — divesting control without severing the division from the parent company entirely. Deliberations remain ongoing, and Bloomberg's sourcing cautions there's no certainty any of the buyout firms will move forward with formal offers.¹ ²

An AI-Driven Backdrop

The renewed sale talk lands alongside Siemens Energy's separate, already-announced rebrand to Omterra, which will unite Siemens Energy and Siemens Gamesa under one identity.³ Shares fell 2.7% Monday before recovering 2.4% Tuesday, leaving the stock roughly 22% below its 52-week high even as it remains up about 24% year to date. Sell-side analysts have stayed constructive regardless: Bernstein reaffirmed an "Outperform" rating with a €210 target on Aug. 21, and RBC held its own "Outperform" call a day earlier despite trimming its target to €200.²

Management has said proceeds from a stake sale would give Siemens Energy more room to invest in the gas turbine and grid technology businesses it has identified as its core growth engines—segments benefiting most directly from AI-driven data center demand.²

A sale would hand a controlling stake in the world's largest industrial steam turbine maker to private equity for the first time, a shift that MRO providers and steam turbine operators will be watching closely for what it means for long-term parts, service and warranty continuity. Whether Siemens Energy ultimately proceeds with a stake sale, a full spin-off, or neither, the size of the interested buyer pool — five major infrastructure investors by Bloomberg's count — suggests industrial steam turbine assets are drawing renewed appetite as data-center power demand reshapes valuations across the sector.

References
1. Siemens Energy hires Goldman for steam turbine unit stake sale; shares climb. Investing.com; Aug. 25, 2026. Accessed Aug. 26, 2026.
2. Siemens Energy's Steam Turbine Auction Draws a Crowd of Buyers as AI Power Demand Reshapes the Math. NewsCase; Aug. 25, 2026. Accessed Aug. 26, 2026.
3. Siemens Energy to Rebrand as Omterra, Unifying Turbine and Renewables Portfolios. Turbomachinery International; Jul. 22, 2026.