thyssenkrupp held its ground in a persistently difficult market environment – positive free cash flow before M&A and key progress with the transformation in fiscal year 2024/2025

• Order intake of €37.7 billion 15 percent above the prior year, driven by major orders at Marine Systems

• Sales of €32.8 billion in line with expectations, 6 percent below the prior year due to the challenging market environment

• Adjusted EBIT increased to €640 million (prior year: €567 million) despite decline in sales; APEX performance program delivers positive earnings effects

• At €363 million, free cash flow before M&A positive for the third year in succession and significantly above the prior year (€110 million)

• Dividend continuity: Distribution of €0.15 per share proposed

• Forecast for current fiscal year: Adjusted EBIT between €500 million and €900 million, free cash flow before M&A between €(600) million and €(300) million and net income between €(800) million and €(400) million expected

• CEO Miguel López: “With the presentation of our new future model, we made key decisions for the transformation of thyssenkrupp in the past fiscal year. In recent months, the first milestones were already achieved: We were extremely successful with the stock market listing of TKMS and made key progress in the realignment of the steel business by concluding the ‘Steel Realignment’ collective restructuring agreement. Following this year of decisions, we are now putting all our effort into their continuing implementation.”

In fiscal year 2024/2025 (reporting date: September 30), thyssenkrupp made key progress in a persistently difficult market environment – both in its strategic transformation and operational performance. The presentation of ACES 2030 – the new strategic future model – defined the framework for the company’s realignment. thyssenkrupp AG will become a financial holding company, while the businesses are to be transitioned to stand-alone solutions that are open to third-party investment. The first milestones have already been successfully achieved.

“With the presentation of our new future model, we made key decisions for the transformation of thyssenkrupp in the past fiscal year. In recent months, the first milestones were already achieved: We were extremely successful with the stock market listing of TKMS and made key progress in the realignment of the steel business by concluding the ‘Steel Realignment’ collective restructuring agreement.

Following this year of decisions, we are now putting all our effort into their continuing implementation. We will be using the coming years to consistently drive forward with transforming thyssenkrupp into a financial holding company with majority investments in high-performing, independent companies,” said Miguel López, CEO of thyssenkrupp AG.

As part of the Group’s comprehensive transformation, ensuring strong social protection for our employees remains a key priority. In early December, thyssenkrupp AG and IG Metall therefore agreed to extend the existing framework agreement. The shared objective is to enhance the competitiveness of the individual business units while securing jobs and locations for the long term wherever possible.

At the same time, thyssenkrupp held its ground operationally in fiscal year 2024/2025. Compared with the prior year, order intake increased by 15 percent, primarily due to major orders at Marine Systems. Although sales declined to €32.8 billion as a result of fluctuations in demand and price trends, adjusted EBIT increased by 13 percent year-on-year. This development was buoyed by positive effects from the APEX performance program. Free cash flow before M&A was positive for the third year in succession and, at €363 million, above the prior-year figure (€110 million).

“The fiscal year was again characterized by geopolitical and economic challenges. Greater market uncertainty and weaker customer demand tangibly curbed our businesses. Nevertheless, we succeeded in holding our ground thanks to systematic efficiency improvements and cost reductions,” explained CEO Miguel López.

Fiscal year 2024/2025: Key indicators for the thyssenkrupp group

Despite continuing economic challenges, the group significantly increased order intake to €37.7 billion from €32.8 billion a year earlier. Marine Systems posted considerable order growth. The main contribution to this was the addition of four submarines in a substantial extension of the order for the German-Norwegian 212CD program and the addition of two submarines to the existing order from Singapore. Customer demand in the Automotive Technology segment was still restrained and order intake was below the prior-year level. The order situation at Steel Europe and Materials Services was also impacted by further demand- and price-induced declines. The figures for the Decarbon Technologies segment were below the prior-year level overall.

The group’s sales declined against the backdrop of weaker market momentum, amounting to €32.8 billion (prior year: €35.0 billion). This was mainly attributable to weaker demand and lower prices at Materials Services and Steel Europe. Automotive Technology and Decarbon Technologies also saw declining demand trends. By contrast, Marine Systems increased sales year-on-year due to project progress in the new construction business and in the marine electronics and software businesses.

At €640 million, the group’s adjusted EBIT was €72 million above the prior-year level of €567 million. The increase resulted primarily from the significantly improved earnings at Decarbon Technologies. This was mainly due to positive one-time effects – in chemical plant engineering, for example – and lower extraordinary additional costs. Steel Europe increased earnings year-on-year, profiting from factors such as decreasing raw material costs, lower depreciation and amortization as a result of impairment losses and positive one-time effects.

Marine Systems also improved earnings slightly. Automotive Technology and Materials Services continued to operate in a challenging market environment and posted lower earnings. Positive effects from the APEX efficiency program buoyed earnings trends in all segments.

The bottom line for thyssenkrupp in the past fiscal year was net income of €532 million – an increase of around €2 billion compared with the prior-year figure of €(1,450) million. The positive figure mainly resulted from a reversal of impairment losses on the remaining investment in TK Elevator (€902 million) and from the sale of thyssenkrupp Electrical Steel India (around €320 million). It was partly offset by impairment losses of around €(790) million, restructuring expenses of around €(220) million and a tax effect of €(135) million in connection with the spin-off of the marine business. Net income after deducting minority interest was €465 million (prior year: €(1,506) million). Earnings per share came to €0.75 (prior year: €(2.42)).

Compared with a year earlier, equity increased from €10.4 billion to €10.6 billion. Contributions to this came from the remeasurement of pension obligations due to the change in interest rates, as well as from net income. It was partly offset by factors including negative currency effects. The equity ratio remained at a comfortable value of 37 percent (prior year: 35 percent).

Compared with the previous year, free cash flow before M&A rose by €253 million to €363 million. Factors in this positive development included the improved release of funds in net working capital, as well as the significantly larger contribution from Marine Systems in connection with new construction orders.

Thanks to the positive free cash flow before M&A, net financial assets on the reporting date increased to €4.9 billion (prior year: €4.4 billion). With cash and cash equivalents and undrawn committed credit lines totaling €6.8 billion, thyssenkrupp still has a very good liquidity position. Having repaid the last bond of €0.6 billion in February of this year, thyssenkrupp is largely free from bank and capital market debt.

It will be proposed to the Annual General Meeting on January 30, 2026 that a dividend of €0.15 per share be paid for fiscal year 2024/2025. In this way, thyssenkrupp continues to ensure dividend continuity.

“We achieved our financial target values that were adjusted in the 3rd quarter. In the case of free cash flow before M&A, we slightly exceeded the target and ended the third year in succession with a positive figure,” emphasized Dr. Axel Hamann, CFO of thyssenkrupp AG. “However, we must assume that the difficult market conditions will persist in the next fiscal year. That is why the determined implementation of our efficiency and cost-cutting programs in all segments is crucial for our earnings development. It is now a matter of holding this course and remaining consistent in implementing our measures.”

Forecast 2025/2026: Adjusted EBIT between €500 million and €900 million expected

The persistently challenging market environment is also shaping the outlook for the current fiscal year.

For fiscal year 2025/2026, thyssenkrupp anticipates sales development in a range between minus 2 percent and 1 percent. In particular, demand-induced growth is expected at Materials Services and Steel Europe, offset by corresponding declines at Automotive Technology and Decarbon Technologies.

thyssenkrupp expects adjusted EBIT between €500 million and €900 million. Achievement of a figure in this corridor will be supported mainly by effects from restructuring measures that have already been initiated and by further measures as part of the APEX performance program.

thyssenkrupp anticipates that free cash flow before M&A will be between €(600) million and €(300) million. It includes cash outflows of around €350 million for restructuring, primarily at Automotive Technology and Steel Europe. In addition, the payments profiles in the project businesses – mainly prepayments at Marine Systems – will have a major influence on development.

A figure of between €(800) million and €(400) million is forecast for net income. In particular, it includes the establishment of restructuring provisions at Steel Europe.

Dr. Axel Hamann, CFO of thyssenkrupp AG: “Our forecast takes account of the persistently challenging market conditions and of the efficiency and restructuring measures in our segments. Through the measures that are planned for the current year and already factored in – especially in the steel business and at Automotive Technology – we are creating the basis for sustainably improving our earnings. In the medium term, we remain committed to our financial targets. We are still seeking to achieve an adjusted EBIT margin of 4 to 6 percent at group level, a significantly positive value for free cash flow before M&A and reliable dividend payments for our shareholders.“

Strategic development of the segments

thyssenkrupp is driving forward with its ACES 2030 strategic future model. The long-term goal is the stepwise transition of all businesses to stand-alone solutions that are open to third-party investment. thyssenkrupp AG is to be transformed into a financial holding company that serves as the umbrella for majority investments in strong and independent companies. The independence of the segments is aimed at strengthening their entrepreneurial freedom and offering them new growth prospects: more decision-making powers, greater flexibility to make investment and marketing decisions and individual access to the capital market. At the same time, the new structure gives the independent companies greater responsibility and improves transparency.

Taken together, these are a significant lever for improving performance sustainably. The starting position for a stand-alone solution differs from segment to segment, depending on the market environment, business model and progress in transformation. In preparing this step, the businesses are therefore setting different accents, moving at different speeds and considering different measures. In the past months, crucial progress was achieved in each of the segments.

Automotive Technology is operating in a persistently difficult market environment and is systematically implementing the global efficiency program that was launched in March. This includes cost cutting, process optimization and the consolidation of support functions. It is planned to reduce costs by around €150 million. To achieve this, around 1,800 jobs are to be cut in the corporate functions and administrative areas. As of October 1, 2025, the segment also realigned its activities into four customer- and technology-focused business units with the goal of optimally leveraging its potential and growing profitably. In parallel, Automotive Technology is focusing on portfolio adjustments. The Automotive Body Solutions, Automation Engineering and Springs & Stabilizers business units will continue as separate businesses. In this connection, thyssenkrupp is exploring strategic options such as partnerships or new ownership models. In this context, the sale of the Automation Engineering core business to Agile Robots SE was initiated in November 2025. Closing of the transaction is subject to the customary regulatory approvals and is expected in the months ahead.

In Decarbon Technologies, the focus is on performance and future viability. Thanks to its broad technology portfolio, the segment makes a significant contribution to the sustainable transformation of energy-intensive industries. Although the market ramp-up of green technologies is advancing at a slower pace than originally anticipated, considerable potential is still seen in the medium to long term. Uhde is the global leader in planning and constructing industrial-scale ammonia plants. Together with Uniper, the company is developing an industrial ammonia cracker that will make it possible to import and use green hydrogen on a large scale. Rothe Erde is contributing to the energy transition with roller bearings for a wind farm with a direct connection to an industrial site. Polysius is delivering the key technology for Germany’s first carbon-neutral cement plant. thyssenkrupp nucera is driving forward with the expansion of green hydrogen production. With more than 600 projects and over 10 GW of installed output, the company ranks among the leading suppliers of electrolysis technologies.

Materials Services is continuing its transformation from a traditional materials supplier to a modern supply chain service provider. Contributions to this will come from expanding the supply chain business, making targeted investments in the North American service and manufacturing businesses, further developing the service center business in Germany and strengthening the digital product portfolio. In North America, for example, the capacities for precision metal processing have been expanded by taking over Cobotix Manufacturing and opening a new site in New Mexico to grow processing and distribution activities. In the USA, Materials Services now ranks among the top 20 providers in the warehousing business. The digital solutions portfolio was strengthened through the acquisition of Luxembourg-based Waves, a software provider in the area of ESG/sustainability data and reporting. The segment also increased its digital expertise and market presence by expanding the service center and integrating the technology center in India.

Steel Europe is continuing the consistent implementation of its strategic realignment. At the start of December, the Steel Executive Board and the IG Metall trade union signed the “Steel Realignment” collective restructuring agreement. This forms the basis for the stepwise implementation of the industrial future concept for Steel Europe. The declared aim is to achieve the urgently needed cost-cutting measures without any compulsory redundancies. Already at the start of April 2025, the company terminated the supply contract with Hüttenwerke Krupp Mannesmann as of December 31, 2032. This is an important step toward the necessary capacity adjustments. The annual shipment capacity is to be reduced from around 11.5 million tons at present to a target level of around 8.7 to 9 million tons. Moreover, the ramp-up of the new finishing complex in Duisburg concluded key investments of around €800 million to align the production network at the Duisburg site with future customer requirements and profitable premium products. Despite the challenging economic environment and regulatory uncertainty, construction of the direct reduction plant in Duisburg is progressing. Moreover, in mid-September 2025, a non-binding indicative offer was received from Jindal Steel International for the acquisition of thyssenkrupp Steel Europe. This is being reviewed by thyssenkrupp AG with regard to economic viability, the continuation of the green transformation and employment at the company’s steel sites. In this connection, EP Group (EPG) and thyssenkrupp AG mutually agreed to end their negotiations on a possible 50 / 50 joint venture for thyssenkrupp Steel Europe. As of September 30, 2025, EPG returned the 20-percent interest it had acquired in thyssenkrupp Steel Europe AG on July 31, 2024 and received reimbursement of the purchase price.

TKMS (Marine Systems segment) has been an independent company listed on the stock exchange since October 20, 2025. In the meantime, TKMS meets the Deutsche Börse criteria for inclusion in the MDAX and will be admitted to the second most important German index as of December 22. As Europe’s only fully integrated system supplier for maritime defense, TKMS combines its platform expertise in submarines and surface vessels with a strong market position in maritime electronics, sensors, effectors, unmanned systems, maritime guidance systems and software. With a record order backlog of €18.2 billion, the company is ideally positioned. The stock market listing provides TKMS with financial independence and creates additional agility, flexibility and new growth and innovation opportunities. At the same time, thyssenkrupp AG remains the strategic majority shareholder with an interest of 51 percent, thus strengthening stability.