thyssenkrupp (TKA) Q4 24/25 earnings summary

Executive summary

• Strategic transformation advanced with the shift to a financial holding structure, ACES 2030 model, and increased entrepreneurial freedom for segments.

• Successful spinoff and MDAX listing of TKMS, delivering over 14% value creation for shareholders, with 49% of shares distributed and 51% retained.

• Major restructuring agreements reached, especially in Steel Europe, including a collective agreement with IG Metall and secured financing until 2030.

• Negotiations for the sale of the steel business to Jindal Steel are progressing, with due diligence ongoing.

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

Financial highlights

• Group sales declined 6% year-over-year to €32.8 billion, mainly due to weak demand and market headwinds.

• Adjusted EBIT increased by €72 million year-over-year to €640 million (1.9% margin), up 13%.

• Net income reached €532 million, a turnaround from a €1,450 million loss, aided by one-time gains and TKE reclassification effects.

• Free cash flow before M&A was positive for the third consecutive year at €363 million, up €253 million year-over-year.

• Net cash position at €4.9 billion, supported by asset sales and positive cash flow.

Outlook and guidance

• Fiscal year 2025/2026 expected to be a year of implementation, with continued restructuring and market uncertainty.

• Sales projected to range from -2% to +1% year-over-year, with adjusted EBIT guidance of €500–900 million.

• Free cash flow before M&A expected between -€600 million and -€300 million, reflecting higher restructuring outflows.

• Net income guidance for the group is between -€800 million and -€400 million, mainly due to restructuring provisions.

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