ThyssenKrupp reports first quarter beat driven by Steel Europe

Investing.com -- Thyssenkrupp AG O.N. reported better-than-expected first quarter results on Thursday, with adjusted EBIT of €211 million exceeding consensus estimates of €194 million, primarily due to strong performance in its Steel Europe division.

The German industrial group’s Q1 adjusted EBIT represented a 9% beat versus consensus, though it declined from €274 million in the previous quarter. The company confirmed its fiscal year 2025/26 outlook, projecting sales to decline by -2% to +1% and EBIT between €500-900 million.

Steel Europe was the standout performer, delivering €216 million in earnings compared to consensus expectations of €108 million. The segment benefited significantly from cost reductions, efficiency gains, lower raw material costs, one-off effects, and reduced depreciation following recent impairments.

Other divisions fell short of expectations. Automotive Technology posted €20 million versus €44 million consensus, while Decarbon Technologies reported a loss of €16 million against expected earnings of €16 million. Marine Systems (€26 million vs €34 million consensus) and Material Services (€15 million vs €38 million consensus) also missed projections.

The company reported negative free cash flow of -€1.5 billion due to seasonal working capital outflows. For the full year, ThyssenKrupp expects free cash flow before M&A between -€600 million and -€300 million.

The results highlight the effectiveness of ThyssenKrupp’s internal cost-cutting measures in offsetting ongoing market headwinds, with the beat driven primarily by restructuring and efficiency programs rather than market recovery.

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