Shares of Germany’s Thyssenkrupp climbed nearly 8% on Tuesday following the announcement of improved financial results and a significant €1 billion impairment on its steel division.
The company’s Frankfurt-listed stock rose 7.9% by 9:52 a.m. London time, reflecting optimism among investors despite ongoing challenges.
Key Financial Highlights
- Thyssenkrupp reported an adjusted EBIT of €151 million in Q4, surpassing the Visible Alpha consensus forecast of €120 million.
- For the fiscal year ending September 30, the net loss narrowed to €1.5 billion, down from €2 billion in the prior year.
- The reduced loss was attributed to asset impairments totaling €1.2 billion, with €1 billion linked to the struggling Steel Europe division.
Strategic Focus for 2025
CEO Miguel Lopez emphasized that the current fiscal year will be critical, calling it a “year of decisions.” The company plans to focus on:
- Finalizing a potential joint venture with Czech billionaire Daniel Křetínský, who acquired a 20% stake in Steel Europe over the summer.
- Restructuring Steel Europe into an independent company.
- Evaluating the sale of its Marine Systems business and ongoing talks with the German government for state support.
Green Transformation and Future Growth
Thyssenkrupp is also working to improve performance across all its divisions while leveraging opportunities presented by the green transformation. “We aim to position ourselves strongly in a competitive and evolving market,” Lopez said.
Germany’s Economic Struggles
Thyssenkrupp’s results come amid broader challenges for the German economy, which is grappling with:
- Weak domestic demand and an investment crisis.
- Sluggish global demand for industrial goods, impacting the country’s export-driven economy.
- Political instability, with the collapse of the ruling coalition earlier this month.
Market Reaction
Despite challenges, Citi analysts noted the company’s “small beat” on Q4 results and highlighted its net cash position of €4.4 billion, exceeding expectations.
This improvement signals cautious optimism for Thyssenkrupp as it navigates economic headwinds and internal restructuring efforts.
