thyssenkrupp (TKA) Q1 2026 earnings summary

Executive summary

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

• Green transformation advances with new ammonia cracking technology agreements and continued DRI plant construction.

• Historic milestones include a restructuring agreement with IG Metall for Steel Europe and a term sheet for HKM, with Salzgitter to become sole shareholder by June 2026.

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

• Full-year group guidance for FY 2025/2026 confirmed despite challenging markets and macro uncertainties.

Financial highlights

• Q1 sales declined 8% year-over-year to €7.2 billion, with all segments reporting lower sales.

• 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, expected to recover as free cash flow improves in H2.

Outlook and guidance

• Group guidance for FY 2025/2026 confirmed: sales expected between -7% and +1% versus prior year, with segment guidance showing Automotive Technology -3% to +1%, Decarbon Technologies -19% to -7%, Materials Services -6% to +5%, Steel Europe -10% to 0%, Marine Systems -4% to +5%.

• Adjusted EBIT guidance ranges from €225–900 million.

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

• Net income guidance unchanged at -€800 million to -€400 million, mainly reflecting restructuring at Steel Europe.

• Investments expected at the lower end of €1.4–1.6 billion.