DORTMUND (dpa-AFX) - The growth of electrolysis specialist Thyssenkrupp Nucera's hydrogen business, which has been going strong recently, is coming to a standstill. The company, which is part of the Thyssenkrupp industrial group, has felt an increasing reluctance to invest in new business in this area. Nucera therefore lowered its expectations for the hydrogen business for the current financial year and for 2024/25 when presenting its figures for the second quarter on Wednesday. The sales outlook for the Group was specified.

The financial market was surprised. The SDax-listed share fell by almost ten percent. For Deutsche Bank, however, the development is not entirely unexpected. However, the reduction is not priced into the consensus estimates. Erwan Kerouredan from the investment bank RBC echoed this view, but at the same time praised the good progress made.

Thyssenkrupp lost more than seven percent. In the meantime, the shares fell almost to their record low. On the same day, the industrial group presented mixed figures and lowered its outlook for sales and consolidated earnings due to the weak economy.

According to Thyssenkrupp Nucera, delays in the final investment decisions of many potential customers were becoming increasingly apparent. "We are currently observing a discrepancy in Europe and North America between originally planned projects and final investment decisions on the necessary electrolysis capacities," commented Christoph Noeres, head of the division. Many investors are also waiting for regulatory requirements to be put in place. Noeres also criticized the speed at which commitments were being made and called for such "barriers to investment" to be removed.

In the second quarter (as at the end of March), incoming orders therefore fell by 42% to EUR 75.3 million, with the hydrogen business alone contributing to this with a drop in new business of 86%. Nucera has lowered its sales expectations for the current financial year to between 500 million and 550 million euros. The company had previously forecast 600 to 700 million euros. Nucera also anticipates lower turnover than expected in the coming 2024/25 financial year: 700 to 800 million euros are now on the cards, compared to the originally planned 850 to 950 million euros. Reaching the break-even point in the coming financial year is also on the cards. Nucera only wants to "come close" to this.

The weaker outlook for the hydrogen business is also reflected in Group sales: Here, the company specified its forecast for the current year and expects 820 to 900 million euros. This is below analysts' expectations. Previously, Nucera had forecast an increase in the mid double-digit percentage range. High start-up costs for the ramp-up of the hydrogen business are likely to lead to a loss before interest and taxes (EBIT) in the mid double-digit million euro range, Nucera confirmed.

The company was able to continue its growth course in the second quarter. Turnover rose by eleven percent to 168 million euros, as the company also announced. Investments in the expansion of water electrolysis resulted in a loss before interest and taxes (EBIT) of 10.6 million euros in the quarter, following a profit of 2.3 million in the previous year. Thanks to a better financial result, the bottom line was a loss of 7.2 million euros, compared to a profit of 3.6 million a year earlier. Analysts had hoped for better figures./nas/ngu/jha/