Thyssenkrupp expects deep net loss in 2026 due to steel restructuring provisions (updated)

TKMS AG & Co KgaA

09/12/2025 06:36

Up to 800 mln euro loss seen by 2026 amid restructuring costs

Proposes unchanged dividend of 15 euro cents per share

Shares fall 13% in morning trading

Adds CEO comment in paragraph 4, detail on TKSE book value in paragraph 5

By Christoph Steitz and Tom Käckenhoff

ESSEN, Germany, Dec 9 (Reuters) - Thyssenkrupp TKAG.DE expects to swing to a net loss of up to 800 million euros ($931 million) in 2026, blaming restructuring provisions at its steel unit, which the German conglomerate is trying to sell to India's Jindal Steel International.

Shares fell as much as 13%, with market participants pointing to the disappointing outlook.

The German conglomerate is engaged in talks with Jindal Steel International that could result in a firm bid for Thyssenkrupp Steel Europe (TKSE) after due diligence is completed.

"We naturally always assume that the talks with Jindal will work out, because it's simply a perfect fit. And otherwise, we always have a Plan B up our sleeve, which we will communicate when the time comes," Thyssenkrupp CEO Miguel Lopez said.

Thyssenkrupp has for years tried to divest TKSE, Germany's largest steelmaker, but efforts have collapsed mainly due to pension liabilities of 2.5 billion euros that are tied to the business. TKSE has a current book value of 2.4 billion euros.

HIGH IMPAIRMENTS DUE TO ASIAN RIVALRY, TARIFFS

TKSE caused impairments of 600 million euros in the past fiscal year, Thyssenkrupp said, due to exposure to fierce Asian competition, U.S. tariffs and a generally weak European economy, a trend that has impacted most of Thyssenkrupp's units.

Noting a challenging market environment, Thyssenkrupp said that free cash flow before M&A - closely watched by investors to determine the group's ability to earn money - would be at a negative 300 million to 600 million euros in 2026.

This compares with 363 million euros in 2025, a third consecutive year of positive free cash flow.

Adjusted operating profit is expected at 500 million to 900 million euros in 2026, below the 918 million forecast in a company-provided poll.

Thyssenkrupp, which recently spun off a minority of its warship division TKMS TKMS.DE and is looking to sell stakes in all of its businesses, proposed to keep its dividend unchanged at 0.15 euros per share for 2025 compared with 2024.

($1 = 0.8593 euros)

 (Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Paul Simao, Miranda Murray and Bernadette Baum)

 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647))