Thyssenkrupp stocks display a necessary increase in value
Thyssenkrupp, the German multinational conglomerate, recently reported mixed financial results for the third quarter of the 2024/2025 fiscal year. The company, now under the leadership of CEO Miguel López, faced declining sales of approximately 8.8-9% year-on-year to around €8.2 billion, due to weak demand and price factors [1][2][4]. Despite this, adjusted EBITDA improved slightly to around €155 million, aided by cost-cutting programs (APEX) [1][2][4].
However, the company posted a net loss that widened significantly to over €250 million, partly due to one-time tax effects and restructuring expenses mainly in the Steel Europe and Automotive Technology segments [2][3]. The weak automotive industry and delays in new vehicle approvals, including those caused by the WLTP testing standard, affected the steel division [2]. Additionally, tariffs on steel in the U.S. and a slowdown in the China business negatively impacted the profitability of the elevator division [2].
Future Plans After Canceling the Joint Venture with Tata Steel
In light of these challenges, Thyssenkrupp is focusing on several strategic initiatives. The company is reducing its investment plans for the 2024/2025 fiscal year and expects adjusted EBIT at the lower end of the €600-1,000 million forecast range [1][5].
Thyssenkrupp is also progressing with the planned spin-off and stock market listing of its Marine Systems segment in 2025. This segment has been performing well and boosting order intake despite broader market challenges [1][3]. The company is continuing restructuring within Steel Europe and Automotive Technologies to stabilize earnings [1][3].
Thyssenkrupp maintains a strong liquidity position with cash, credit lines, and net financial assets totaling around €5.7 billion as of June 2025, supporting these transformation efforts [3].
Guido Kerkhoff, who was the CEO at the time of these challenges, is no longer leading Thyssenkrupp; recent financial updates and strategic directions come under López’s leadership after the joint venture with Tata Steel was canceled.
Challenges Ahead
The rating agency Moody's is reviewing Thyssenkrupp's creditworthiness, putting its rating at risk [6]. Kerkhoff, now out of the CEO role, streamlined operations and implemented a new structure in April to improve management and reduce administrative costs [7].
As Thyssenkrupp navigates restructuring and strategic portfolio adjustments independently, the company continues to focus on its core strengths. Finnish competitor Kone has reportedly expressed interest in the Thyssen division, which could be worth over €10 billion on the stock exchange, significantly more than Thyssenkrupp's current market capitalization of €8 billion [2].
In conclusion, Thyssenkrupp under CEO Miguel López faces a challenging market with declining sales but improved adjusted earnings and stable liquidity. The future strategy centers on the Marine Systems IPO, Steel Europe restructuring, and cautious investment cuts. Guido Kerkhoff is not currently leading Thyssenkrupp, and recent financial updates and strategic directions come under López’s leadership after the JV with Tata Steel was canceled.
References
- Thyssenkrupp reports mixed third-quarter results
- Thyssenkrupp posts wider Q3 net loss as it cuts costs
- Thyssenkrupp Q3 results: what you need to know
- Thyssenkrupp Q3 earnings preview
- Thyssenkrupp cuts investment plans, sees lower EBITDA
- Moody's reviewing Thyssenkrupp's creditworthiness
- Thyssenkrupp streamlines operations, implements new structure
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