thyssenkrupp (TKA) Q3 23/24 earnings summary

Executive summary

• Q3 2023/24 saw solid performance amid challenging markets, with sales of €9.0bn, down 6% year-over-year, and adjusted EBIT at €149mn, down 39% year-over-year, impacted by negative one-time effects in Decarbon Technologies.

• Group order intake fell 13% year-over-year to €24.9 billion for the nine months ended June 30, 2024.

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

• The group accelerated its APEX performance program and continued its green transformation, with climate targets validated by SBTi and significant progress in hydrogen and decarbonization projects.

• Full-year guidance was adjusted downward due to persistent market headwinds.

Financial highlights

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

• Q3 EBIT adjusted: €149mn (-39% YoY), including a negative one-time effect of €80 million at Decarbon Technologies (Polysius); margin 1.7%.

• Free cash flow before M&A: €-256mn in Q3 and €-983mn year-to-date, impacted by payment shifts and delayed government funding.

• Net cash at €3.2bn as of June 30, 2024; equity ratio at 39%.

• Q3 net income: €-33mn; EPS: €-0.09.

Outlook and guidance

• Full-year 2023/24 sales expected to decline by 6–8% from €37.5bn in FY 2022/23.

• Adjusted EBIT forecasted to exceed €500mn, revised down from previous guidance.

• Free cash flow before M&A expected at around €-100mn.

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

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