thyssenkrupp (TKA) Q3 23/24 earnings summary

Executive summary

• Q3 2023/24 sales were €9.0 billion, down 6% year-over-year, with adjusted EBIT at €149 million, impacted by negative one-time effects in Decarbon Technologies and challenging market conditions.

• Steel Europe advanced its 50/50 joint venture with EPCG, completing a 20% stake sale and negotiating a further 30%.

• The group accelerated its APEX performance program and continued its green transformation, validated by SBTi, with major projects in hydrogen and ammonia decarbonization.

• Order intake for the nine months fell 13% to €24.9 billion, with net loss widening to €410 million.

• Full-year guidance was revised downward due to persistent market headwinds and major impairments.

Financial highlights

• Q3 sales: €9.0 billion (-6% YoY); 9M sales: €26.2 billion (-9% YoY).

• Q3 adjusted EBIT: €149 million (-39% YoY); margin 1.7%.

• Free cash flow before M&A: Q3 at €-256 million; 9M at €-983 million, impacted by payment shifts and delayed government funding.

• Net cash at €3.2 billion as of June 30, 2024; equity ratio at 38.7%.

• Q3 net loss: €-33 million; 9M net loss: €410 million.

Outlook and guidance

• Full-year sales expected to decline by 6–8% versus previous year.

• Adjusted EBIT forecasted to exceed €500 million.

• Free cash flow before M&A expected to be around €-100 million.

• Net income anticipated to remain negative in the mid to high three-digit million euro range.

• Segment outlook: Steel Europe and Materials Services to see significant declines; Marine Systems to improve.