thyssenkrupp (TKA) investor relations material

Executive summary

• Strategic transformation continues with a focus on becoming a lean financial holding company, highlighted by the spin-off of Marine Systems, ongoing negotiations for a majority sale of Steel Europe to Jindal, and the sale of Automation Engineering.

• Green Transformation advanced with a framework agreement for ammonia cracking technology and continued DRI plant construction.

• Order intake fell 38% year-over-year to €7.7 billion, mainly due to prior-year large orders in Marine Systems.

• Market environment remains challenging, but operational performance and restructuring efforts, especially at Steel Europe, are yielding results.

• Group guidance for FY 2025/2026 is confirmed.

Financial highlights

• Q1 sales declined 8% year-over-year to €7.2 billion.

• Adjusted EBIT increased to €211 million, up €20 million year-over-year, with a margin of 2.9%.

• Net income was -€334 million, mainly due to restructuring expenses at Steel Europe.

• Free cash flow before M&A was -€1.5 billion, reflecting typical seasonality, net working capital build-up, and absence of prior-year submarine order advances.

• Net cash position at €3.2 billion as of Dec 2025.

Outlook and guidance

• Group sales expected to decline 4–7% year-over-year; adjusted EBIT guidance €225–325 million.

• Net income guidance unchanged at -€800 million to -€400 million, including restructuring expenses.

• Free cash flow before M&A expected between -€600 million and -€300 million, including up to €350 million in restructuring outflows.

• Segment guidance: Automotive Technology sales -2% to +1%, Decarbon Technologies -10% to -7%, Materials Services +2% to +5%, Steel Europe -3% to 0%, Marine Systems +2% to +5%.

• Investment guidance at the lower end of €1.4–1.6 billion.