German industrial giant thyssenkrupp is facing massive market sell-offs due to its weak forecast for fiscal year 2026. The company said it could make a net loss of up to 800 million euros in 2026 due to reserves related to the planned restructuring of its steel division. In line with this forecast, thyssenkrupp shares fell by as much as 13% during the day.
The company's management stated that negotiations are continuing with the Indian company Jindal Steel International regarding the sale of thyssenkrupp Steel Europe (TKSE), which is the main reason for the expected losses. It was noted that the binding offer could be reviewed after the completion of the due diligence process, while thyssenkrupp CEO Miguel Lopez described the potential deal with Jindal as "ideally suited." Lopez added that there is also an alternative plan in case the deal doesn't go through, but said details would be revealed at the conference. It's the right time.
Thyssenkrupp has long sought to get rid of TKSE, Germany's largest steel producer. However, previous sales attempts failed mainly due to business-related pension obligations in the amount of 2.5 billion euros. The current book value of TKSE is 2.4 billion euros.
.The company also announced that intense competition from Asia, US tariffs and weak economic prospects in Europe led TKSE to record an impairment of 600 million euros in the last financial year. These unfavorable conditions have also affected other business segments of thyssenkrupp.
Given the difficult market conditions, the company expects free cash flow before mergers and acquisitions, a key indicator that investors are closely monitoring, to be between minus 300 and minus 600 million euros in 2026. This represents a significant deterioration from the positive free cash flow of 363 million euros recorded in 2025, which marked the company's third consecutive year of positive cash flow.
Meanwhile, adjusted operating profit in 2026 is projected to be between 500 and 900 million euros, which is lower than market expectations of 918 million euros, reflected in an analytical survey conducted by the company.
Following the recent placement of a minority stake in its TKMS naval vessel division, thyssenkrupp continues to evaluate potential share sales in all business segments of its portfolio. Despite the difficult financial prospects, the company plans to maintain its dividend at the 2024 level by offering a dividend of 0.15 euros per share in 2025.
Author: Editorial
