thyssenkrupp (TKA) Q3 24/25 earnings summary

Executive summary

• Strategic transformation advanced with Marine Systems spin-off approved for 2025 and Steel Europe restructuring, including a 20% stake sale to EPG and plans for a 50/50 JV, targeting increased flexibility and value creation.

• Q3 delivered resilient performance despite persistent market headwinds, with ongoing restructuring and transformation initiatives showing early effects.

• Order intake rose 23% year-over-year to €30.7 billion, driven by major Marine Systems contracts, while sales declined 6% to €24.6 billion due to lower demand and prices in key segments.

• Group focus remains on performance improvement, free cash flow generation, and enabling green transformation through investments and partnerships.

• Green transformation initiatives progressed, including DRI plant construction, Science Based Targets initiative approval, and a strategic partnership with Uniper to convert imported ammonia to hydrogen.

Financial highlights

• Q3 sales at €8.2bn, down 9% year-over-year; 9M sales at €24.6bn, down 6% year-over-year.

• Adjusted EBIT for Q3 at €155mn (up €7mn YoY); 9M at €365mn (slightly below prior year).

• Net income for Q3 at -€255mn, impacted by deferred tax asset devaluation and steel impairments; net loss for 9M narrowed to €121mn from €410mn.

• Free cash flow before M&A in Q3 at -€227mn, improved by €28mn YoY; 9M at -€817mn, improved by €166mn YoY.

• Net cash position at €3.7bn; equity ratio at 34.9%.

Outlook and guidance

• FY 2024/25 sales now expected at -7% to -5% YoY (previously -3% to 0%).

• Adjusted EBIT guided to lower end of €600–1,000mn range.

• Free cash flow before M&A guidance unchanged at €0–300mn.

• Planned investments reduced to €1.4–1.6bn.

• Segment guidance: Automotive sales -7% to -5%, EBIT at lower end of €200–300mn; Decarbon Technologies sales -9% to -5%; Materials Services sales -6% to -3%, EBIT €100–150mn; Steel sales -10% to -8%, EBIT €250–500mn; Marine Systems sales -2% to 1%, EBIT €100–250mn.