(Bloomberg) -- Siemens Energy AG has had a promising to the year, signaling efforts to cap a torrid few years with its wind business are on track to getting resolved. 

Chief Executive Officer Christian Bruch stuck to a prediction that the Gamesa unit will break even in 2026, a positive step after the company has had to repeatedly walk back forecasts. Still, fixing faulty wind turbines will take years with the biggest cash outflow expected in 2025.

“We had a solid start into the year with momentum in all the businesses,” Bruch said in an interview with Bloomberg Television. “We have to continue to drive the energy business outside wind and fix the quality issues particularly in wind step by step.”

Siemens Energy is in discussions with its customers about plans to repair the flawed turbines that have dogged the company for years, Bruch said. Revelations last year about the severity of the problems culminated in a €15 billion ($16.2 billion) deal with the German government, a consortium of banks and its largest shareholder, Siemens AG, to shore up the company’s finances. 

The shares rose as much as 2.8% in early trading, adding to gains of more than 20% this year after slumping more than 30% in 2023. 

The company’s problematic wind turbine unit continue to overshadow strong results for the company’s gas and grid technology businesses. Last month, Siemens Energy pre-released better-than-expected sales and order for the fiscal first quarter.

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Apart from the faulty turbines, Bruch is having to navigate more expensive raw-materials, higher borrowing costs, supply-chain issues and regulatory roadblocks in the US that have weighed on the wind industry more broadly. Danish wind-power company Orsted A/S is pausing dividend payments until at least 2025 and slashed its target for green power project construction.

Bruch said orders for offshore turbines are currently lower than originally anticipated, but he signaled some optimism in the medium term. 

“I believe momentum in Europe will come back next year,” he said, referring to offshore projects. “The US is definitely delayed.”

On Wednesday, Siemens Energy detailed free pre-tax cash flow reached a negative €283 million for the quarter, more than four times the loss recorded a year ago. 

Read more: Siemens Energy Plans Gamesa Cost Cuts as Part of Turnaround

The manufacturer confirmed its full-year forecast of as much as 7% comparable revenue growth even as Gamesa’s order intake fell short of forecasts last quarter. Pretax free cash flow is expected at a negative of about €1 billion. Losses at Gamesa are expected at around €2 billion before special items.

Siemens Energy has sold a stake in its Indian unit for €2.1 billion with proceeds resulting in a €1.88 billion profit last quarter.

--With assistance from Tom Mackenzie.

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