Germany’s thyssenkrupp AG anticipates revenue growth of between negative 2% and positive 1% in its fiscal year through September 2026.
This outlook appears cautious mainly due to expected declines in thyssenkrupp’s Automotive Technology and Decarbon Technologies divisions. Against that, the firm says it expects demand-induced growth for its steel units, distribution division tk Materials Services and steelmaking division tk Steel Europe. The group did not justify its positive sentiment on steel demand in the report or during its annual press conference on Tuesday.
Nevertheless, costs arising from the restructuring of the Steel division will affect the parent group to the point that it is forecasting a loss for the 2025/26 year. The overall restructuring involves layoffs and a reduction of steelmaking capacity.
The group is in close negotiations with Jindal Steel, which is testing a takeover of tk Steel. According to thyssenkrupp chief executive Miguel López, Jindal is fully aware of the restructuring efforts at tk Steel. “Without our campaign to make tk Steel competitive again, Jindal would not have come knocking in the first place,” Kallanish heard him say during the conference.
In the fiscal year ending September 2025, finished steel production reached 8.3 million tonnes, significantly below the prior-year level of 9.4mt. Apart from weaker market activity, the drop was also caused by temporary production restrictions for crude steel and at some downstream plants, as a result of conversion measures and technical problems, the firm says.
Order intake and revenue of the Steel division each fell by 9% on-year, to €9.1 billion ($10.6 billion) and €9.8 billion, respectively. Notably, the division achieved a big leap in earnings, coming from an Ebit loss of €770 million to a profit of €189m, caused by the one-off effect of the sale of thyssenkrupp Electrical Steel India.
