Industrial group Thyssenkrupp has slightly trimmed its revenue forecast for the 2025/26 fiscal year following losses in the second quarter. The group announced on Tuesday that sales expectations have been adjusted by one percentage point to a range of minus 3% to zero growth compared to the previous year. Thyssenkrupp had previously projected a range between a 2% decline and a 1% increase. 'We are somewhat more cautious regarding revenue expectations, also in light of intensified geopolitical uncertainties and their impact on international markets,' explained CFO Axel Hamann. He reaffirmed the remaining targets for profit and cash flow. CEO Miguel Lopez announced his intention to continue the resolute transformation of the once sprawling conglomerate into a financial holding company. However, he recently had to put talks regarding the sale of the steel division on hold.

Quarterly revenue fell by 2% to approximately 8.4 billion euros, a less severe decline than experts had anticipated. Analysts in a Vara survey published by Thyssenkrupp had expected an average of 8.2 billion euros. Adjusted operating profit (EBIT) rose by 179 million euros to 198 million euros, bolstered by the cost-cutting program initiated by Lopez; analysts had forecast 167 million euros. Paradoxically, the long-troubled steel division provided the largest contribution to earnings. On the bottom line and after minority interests, Thyssenkrupp posted a small profit of 1 million euros (previous year: 155 million euros).

For the full year, the group continues to expect a loss of between 800 and 400 million euros - Thyssenkrupp is primarily weighed down here by the costs of restructuring the steel division. However, Thyssenkrupp now sees 'significantly improved earnings prospects' for this unit. This is also why Lopez decided to shelve talks regarding a sale to India's Jindal Steel International for the time being. 'The independence of Thyssenkrupp Steel Europe remains the stated goal,' the group emphasized. According to a presentation, the group is currently reviewing the medium-term targets for the division.

Lopez has mandated a profound restructuring of the steel business, formerly the core of the Ruhr-based group. It is already clear that up to 11,000 of the division's approximately 26,000 positions will be cut or outsourced in the coming years to rehabilitate the business. However, this incurs high costs, such as for severance payments. Past attempts to sell the steel business, merge it into a joint venture, or take it public have failed. Lopez himself stated only weeks ago that progress in the realignment was making Thyssenkrupp Steel more attractive again: 'Now we are making steel fit for the future - whether with or without Jindal.' As part of the restructuring, the group also intends to divest its stake in Huettenwerke Krupp Mannesmann (HKM). These shares are expected to go to the existing partner Salzgitter. 'With the planned sale of Thyssenkrupp Steel's HKM shares to Salzgitter, we are taking an important step toward positioning the steel business competitively,' Lopez said.

(Report by Matthias Inverardi, edited by Sabine Wollrab. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)