thyssenkrupp (TKA) Q4 24/25 (Media) earnings summary

Executive summary

• Fiscal year 2024-25 saw challenging geopolitical and economic conditions, with ongoing conflicts, protectionism, and weak demand in key industries.

• The group is transforming into a financial holding structure with standalone business segments to enhance flexibility, accountability, and growth.

• Order intake rose 15% year-over-year to €37.7 billion, driven by major Marine Systems orders.

• Key milestones included the successful IPO of TKMS (Marine Systems), now in the MDAX, and a collective restructuring agreement for the steel segment.

• Net income rebounded to €532 million from a €1,450 million loss, mainly due to reversal of impairment losses and asset sales.

Financial highlights

• Consolidated net sales for 2024-25 were €32.8 billion, down 6% year-over-year.

• Adjusted EBIT improved by €72 million to €640 million, a 13% increase, supported by the APEX performance program.

• Free cash flow before M&A was €363 million, up from €110 million, exceeding guidance and prior year.

• Net financial assets rose to €4.9 billion; total equity increased to €10.6 billion, with an equity ratio of 37%.

• EBITDA increased 67% year-over-year to €1,490 million; ROCE improved to 0.7% from -8.0%.

• Earnings per share rose to €0.75 from a loss of €2.42.

• Proposed dividend of €0.15 per share, unchanged from prior years.

Outlook and guidance

• For 2025-26, sales are expected to change between -2% and +1% year-over-year.

• Adjusted EBIT forecasted at €500-900 million; free cash flow before M&A expected between €(600) million and €(300) million, reflecting restructuring outflows.

• Net income projected between €(800) million and €(400) million, including significant restructuring provisions.

• Medium-term targets: 4%-6% adjusted EBIT margin, positive free cash flow before M&A, and reliable dividends.