thyssenkrupp (TKA) Q4 23/24 earnings summary

Executive summary

• Achieved adjusted guidance for sales, EBIT, and free cash flow before M&A despite challenging macroeconomic and geopolitical conditions and €270 million in restructuring costs.

• Transformation focuses on portfolio optimization, performance improvement, and green transformation, including the APEX program.

• Net cash position of €4.4 billion and equity ratio of 35.3% maintained; dividend of €0.15 per share proposed.

• Significant impairments at Steel Europe due to macro headwinds and business plan finalization.

• Strategic progress includes a 20% sale of Steel Europe and ongoing Marine Systems spinoff plans.

Financial highlights

• FY 23/24 sales: €35.0 billion, down 7% YoY and at the midpoint of guidance.

• Adjusted EBIT: €567 million (-19% YoY), above guidance; Q4 adjusted EBIT: €151 million (+72% YoY).

• Net income: -€1.4 billion, mainly due to €1.6 billion in special effects and €1.0 billion impairments at Steel Europe.

• Free cash flow before M&A: €110 million, supported by early customer payments; Q4 FCF before M&A: €1,093 million.

• EPS: -€2.42 (improved by €0.5 YoY); proposed dividend of €0.15 per share.

Outlook and guidance

• FY 24/25 guidance: sales growth of 0%-3%, adjusted EBIT of €600–1,000 million (1.7–2.8% margin).

• Free cash flow before M&A expected at €-400 million to €-200 million, reflecting restructuring payouts.

• Segment guidance: AT sales +1–4%, DT -3–0%, MX +2–5%, SE +0–3%, MS -7–4%.

• Strategic focus on Steel Europe JV with EPCG, Marine Systems spin-off, and green transformation investments.

• Midterm targets confirmed: 4%-6% EBIT margin, significant positive free cash flow before M&A, and reliable dividends.