CFO — Finance, Cash & Capital

Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind the PE thesis.

Siemens Gamesa Renewable Energy, S.A. · FY26 (modeled)

#1 global offshore wind OEM

26,000 employees · 7+ US sites · 81 countries

▲ Executive read· the answer, then the moves

Liquidity of $900M (≈ 4 weeks of cover) and $1092M of deal capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ $379.7M and clears $240.9M of overdue receivables.

7 of 8 headline metrics improving vs prior · still off target: Revenue $9.90B vs $10.50B, EBITDA $420M vs $600M, EBITDA Margin 4.2% vs 6.0%

Do now — ranked by urgency

1
SSE Renewables credit exposureAct now
Why it matters
Move to credit hold pending paydown; reforecast ARR net of likely churn.
What's driving it
Overdue AR
Signal: Alert
FYI
Distress filings + overdue AR; churn risk High on $6.4M account.
Act →▤ open the overdue book
2
Covenant headroom 0.9× (lev 4.6× vs 5.5×)Act now
Why it matters
Sets deal capacity and refinancing risk.
What's driving it
Q1 (act)
Signal: Threshold
FYI
Net-debt/EBITDA 4.6× against a 5.5× ceiling.
Owner: CFO · Treasury
Act →
3
Pull working capital — drive DSO 62→48dWatch
Why it matters
Closing the DSO gap releases ≈ $379.7M of one-time cash; $240.9M is already >60 days overdue and at collection risk.
What's driving it
DSO 62d vs 48d target
Overdue (>60d) $240.9M of $1464M AR
FYI
Brand-level unlock to a 50d stretch ≈ $107.3M
Owner: Treasury
Collect →▤ open the overdue receivables
4
3 brands running DSO > 65 daysWatch
Why it matters
Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.
What's driving it
DSO
Signal: Alert
FYI
ISC (67d), Siemens Gamesa France (66d), SSE Renewables account (67d) lifting blended DSO.
Act →▤ open the overdue book

Adjusted EBITDA

$420M

+26% YoY · 4.2% margin

Liquidity

$900M

≈ 4 weeks of disbursements

M&A deal capacity

$1092M

≈ $109M EBITDA @ ~10x to 5.5x

Working-capital unlock

$379.7M

DSO 62→48d target

Quality of earnings

Reported → Adjusted EBITDA

$-740.25M of add-backs (-176% of adj.) — the diligence-grade walk.

Driver bridge

EBITDA — prior to current year

Organic vs. acquisitive vs. price/mix vs. cost.

Treasury

13-week direct cash flow forecast

Above minimum

Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $361.95M.

$428.79M

Opening cash

$3072M

13-wk collections

$3033M

13-wk disbursements

$467.89M

Closing cash

Capital structure

Leverage runway vs. covenant

Net Debt/EBITDA deleveraging path against the 5.5x covenant ceiling.

Headroom = firepower

Deal capacity

Net-debt capacity to 5.5x

$1092M

≈ $109M acquirable EBITDA @ ~10x

Net Debt/EBITDA2.9x

Covenant Headroom1.3x

Debt Service Coverage Ratio1.7x

Free Cash Flow$210M

Where the cash is trapped

Working-capital cash unlock

$107.3M opportunity

Normalizing lagging units to a 50-day DSO releases ~$107.3M of one-time cash.

Digital Ventures Labs67d

$24.1M

SGRE Battery Solution61d

$22.0M

SG 14-222 DD56d

$19.9M

Siemens Gamesa France66d

$16.0M

Siemens Gamesa India60d

$12.8M

Hermes Digital Diagnostics58d

$9.4M

RecyclableBlade54d

$3.0M

Concentrated in newer cohorts (Hermes Digital Diagnostics, Siemens Gamesa France, SG 14-222 DD) where billing discipline lags integration — the fastest cash win this fiscal year.

Revenue quality

Recurring engine & margin

Annuity growth and where EBITDA is generated.

Annual Recurring Revenue

$1.20B

▲ 9.1% vs priorTarget $1.30B

Recurring Revenue Mix

19.5%

▲ 8.3% vs priorTarget 22.0%

Net Revenue Retention

96.0%

▲ 2.1% vs priorTarget 98.0%

Gross Revenue Retention

98.0%

▲ 1.0% vs priorTarget 99.0%

Annuity engine

ARR bridge

Trend

ARR growth

By business unit

EBITDA margin

Collections

AR aging

Total AR $1464M

Current days$687.32M

1-30 days$365.73M

31-60 days$170.25M

61-90 days$123.59M

90+ days$117.29M

Overdue (>60d) = $240.9M at collection risk.

By account

Receivables & credit watch

Accounts ranked by DSO and credit/churn risk.

Account	Revenue	DSO	NRR	Credit/Churn
SSE Renewables	$80.71M	67d	97%	High
Enel Green Power	$162.69M	63d	104%	Medium
Western Sahara wind project	$51.71M	59d	100%	Medium
EDF Renewables	$179.08M	58d	112%	Low
Moroccan wind farm operator	$90.8M	55d	105%	Medium
IBM	$122.33M	52d	101%	Medium
UPS	$142.51M	49d	106%	Low
Ørsted	$234.57M	47d	108%	Low
Iberdrola	$203.04M	44d	119%	Low
Finnish wind farm developer	$73.15M	41d	110%	Low

M&A

Acquisition cohort economics

EBITDA uplift, DSO normalization and synergy realization (as-acquired → current).

Brand (cohort)	Acq.	Revenue	EBITDA %	DSO	Integration	Synergy	Status
Hermes Digital Diagnostics	2021	$428.79M	113.5→176.56%	71→58d	100%	92%	Integrated
RecyclableBlade	2021	$277.45M	100.89→163.95%	66→54d	100%	90%	Integrated
SG 14-222 DD	2022	$1210.7M	138.73→201.78%	68→56d	95%	88%	Integrated
SGRE Battery Solution	2023	$731.46M	126.11→163.95%	70→61d	82%	74%	In progress
Digital Ventures Labs	2024	$517.07M	113.5→138.73%	73→67d	60%	55%	In progress
Siemens Gamesa India	2024	$466.62M	113.5→151.34%	71→60d	80%	78%	In progress
Siemens Gamesa France	2024	$365.73M	100.89→113.5%	69→66d	45%	40%	Early

Supply

Supplier terms & risk

Partner spend, DPO (working-capital lever), delivery and risk.

Supplier	Category	Spend	DPO	OTIF	Score	Risk
Microsoft Azure	Video Surveillance	$807.13M	45d	96%	91	Low
IBM Consulting	Fire & Access	$731.46M	42d	93%	88	Low
ReStor	Critical Comms	$517.07M	38d	90%	85	Medium
Gefion Supercomputer	Video Surveillance	$340.51M	36d	89%	83	Medium
Tier One PV module suppliers	Video VMS	$290.06M	40d	95%	87	Low
Siemens Financial Services	AV / Collaboration	$239.62M	44d	92%	86	Low