thyssenkrupp announced that it expects losses of up to EUR 800 million in 2026

The company’s management stated that negotiations are ongoing with India-based Jindal Steel International regarding the sale of thyssenkrupp Steel Europe (TKSE), which lies at the core of the expected losses. It was noted that a binding offer could be considered once the due diligence process is completed, while thyssenkrupp CEO Miguel Lopez described a potential deal with Jindal as a “perfect fit.” Lopez added that an alternative plan is also in place should the transaction not materialize, but said details would be disclosed at the appropriate time.

thyssenkrupp has long been seeking to divest TKSE, Germany’s largest steel producer. However, previous sale attempts have failed largely due to EUR 2.5 billion in pension liabilities tied to the business. TKSE’s current book value stands at EUR 2.4 billion.

The company also announced that intense competition from Asia, US tariffs, and a weak European economic outlook led TKSE to record an impairment of EUR 600 million in the last financial year. These adverse conditions have also weighed on thyssenkrupp’s other business segments.

Highlighting the challenging market environment, the company expects free cash flow before M&A—a key metric closely watched by investors—to come in between minus EUR 300 million and minus EUR 600 million in 2026. This represents a significant deterioration compared with the positive free cash flow of EUR 363 million recorded in 2025, which marked the company’s third consecutive year of positive cash flow.

Meanwhile, adjusted operating profit for 2026 is forecast to range between EUR 500 million and EUR 900 million, below the EUR 918 million market expectation reflected in a company-compiled analyst survey.

Following the recent listing of a minority stake in its naval vessels unit TKMS, thyssenkrupp continues to evaluate potential share sales across all business segments in its portfolio. Despite the challenging financial outlook, the company plans to maintain its dividend at the 2024 level, proposing a dividend of EUR 0.15 per share for 2025.