thyssenkrupp (TKA) Q1 24/25 earnings summary

Executive summary

• Q1 delivered solid results amid challenging markets, with most KPIs above the prior year and transformation initiatives offsetting muted demand, especially in Automotive and Materials.

• Marine Systems achieved record-breaking new orders, boosting backlog above €16 billion and supporting cash flow via significant prepayments.

• Strategic portfolio actions advanced, including the minority spin-off of Marine Systems, sale of Electrical Steel India, and progress toward a 50/50 JV for Steel Europe.

• Green transformation progressed with key partnerships and technology deployments in CO2 reduction and hydrogen.

• Order intake rose 57% year-over-year to €12.5 billion, driven by Marine Systems.

Financial highlights

• Sales were €7.8 billion, down 4% year-over-year, mainly due to Automotive, Materials, and Steel Europe.

• Adjusted EBIT rose to €191 million, up €107 million year-over-year, with Steel Europe, Decarbon Technologies, and Marine Systems contributing gains.

• Net income improved by nearly €300 million to -€33 million, reflecting improved EBIT and lower impairments.

• Free cash flow before M&A improved to nearly zero or slightly positive, supported by €1 billion prepayment from Marine Systems.

• Net cash position stable at €4.3 billion; equity ratio at 34.8%.

Outlook and guidance

• Full-year sales guidance lowered to -3% to 0% due to subdued markets, especially Automotive.

• EBIT guidance confirmed at €600–1,000 million; margin expected at 1.8–2.9%.

• Free cash flow before M&A guidance raised to €0–300 million, reflecting Marine Systems prepayments.

• Segment sales guidance lowered for all except Marine Systems, which expects growth.

• Medium-term targets confirmed: adjusted EBIT margin of 4–6% and positive free cash flow before M&A.