Thyssenkrupp's Dual Restructuring Drive: Indiana Exit and HKM Sale Ignite 28% Rally
25.05.2026 - 14:50:59 | boerse-global.de
The German industrial conglomerate is executing its turnaround on two frontlines. Thyssenkrupp has sealed the sale of its HKM steel joint venture to Salzgitter while simultaneously shuttering an automotive plant in the US state of Indiana. Investors have rewarded the clarity with a blistering share price advance — the stock surged 4.1 percent on the day of the latest announcements to EUR 11.29, bringing its monthly gain to a hefty 28 percent.
A Steel Exit and a Plant Closure
Salzgitter will assume full ownership of HKM on 1 June 2026, freeing Thyssenkrupp from a volatile steel joint venture that has long weighed on the balance sheet. The two companies have also agreed that supply contracts between Thyssenkrupp and HKM will terminate in 2028. This divestiture, however, comes after preliminary talks with India's Jindal Steel about a partial sale of Thyssenkrupp's broader steel division were put on ice. The group now faces the task of restructuring its steel operations solo, with up to 11,000 of the roughly 26,000 steel jobs set to be cut or outsourced.
In parallel, the automotive parts unit is trimming its North American footprint. Production at the Terre Haute, Indiana, site — which employs around 230 people — will be wound down by March 2027, with the work consolidated at the company's Hamilton, Ohio facility. North America remains a core market for the division, generating EUR 2.1 billion in annual revenue. Thyssenkrupp's management described the move as essential to restoring competitiveness in the region.
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Policy Tailwinds from Brussels
European regulators are providing additional support for the group's steel business. The EU Parliament has tightened import rules sharply: the duty-free quota for steel will fall to just over 18 million tonnes a year, and any volume above that threshold will face a double tariff of 50 percent. The protectionist shift gives Thyssenkrupp's domestic operations more pricing power as it restructures.
Strong Operating Momentum Underpins the Rally
Yet the share price surge is not solely a story of cost-cutting. Orders in the latest quarter jumped 32 percent to EUR 10.6 billion, with a substantial chunk flowing from the naval systems division. Adjusted operating earnings climbed to EUR 198 million, with nearly all business segments reporting improved profitability. The automotive division, in particular, is already reaping the benefits of earlier efficiency drives. Management has reaffirmed its full-year outlook for adjusted operating profit of between EUR 500 million and EUR 900 million.
Caution Signs on the Charts
The rapid ascent has pushed Thyssenkrupp's stock far above its moving averages. The shares now trade roughly 24 percent above the 50-day line of EUR 9.09, and the relative strength index has shot to 88.7 — deep into overbought territory. From the year's low in March, the stock has more than halved the distance to recovery with a 51 percent climb. Technical analysts warn that a short-term pullback would be a normal and even healthy correction.
Next Milestones
The HKM transaction will be the key catalyst to watch. If the transfer to Salzgitter proceeds smoothly on 1 June 2026, Thyssenkrupp will have cleared a major hurdle in its long-running transformation. For now, the combination of plant closures, portfolio pruning, and a supportive European trade regime has investors betting that the industrial giant is finally turning the corner — even if the charts suggest the market may need to catch its breath first.
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