Thyssenkrupp’s Labor Showdown Looms Over Naval Expansion and Materials Spin-Off
Published on 06/26/2026 at 16:07 | Redaktion boerse-global.de
The gap between Thyssenkrupp’s stock-market optimism and its operational struggles is widening. While the shares have climbed 14.5% since the start of the year, the steel division is bracing for a costly confrontation with the IG Metall union, which has formally terminated the existing collective wage agreements. The move sets the stage for a tense bargaining round that could reshape cost structures at a time when the unit is already bleeding red ink.
Union leaders in North Rhine-Westphalia have ruled out any pay freeze outright, demanding job guarantees and real-wage protection. Concrete percentage demands will be laid out in September. At the same time, IG Metall is calling for a national steel summit to secure state subsidies for the green transformation of the group’s blast furnaces — without such support, management warns of a severe competitive disadvantage.
On the defence side, the outlook is more complex. The Federal Defence Ministry abruptly halted the F126 frigate project on Thursday, citing massive cost overruns and delays. Although Thyssenkrupp was not the prime contractor, the cancellation underscores the volatility of German naval mega-projects. In a twist, the Ministry has instead moved to procure eight Meko A-200 DEU frigates — a vessel that is a core product of Thyssenkrupp Marine Systems (TKMS). That should boost capacity utilisation at the shipyard.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
Beyond Europe, Berlin has been actively lobbying for an order of six submarines to be built by TKMS in Mumbai, tying the potential Indian deal directly to the eventual standalone listing of the marine unit. Market observers view a successful export contract as a prerequisite for that IPO.
Meanwhile, the planned initial public offering of Materials Services — the materials distribution division — remains the headline catalyst for investors. Bank of America has reaffirmed its buy rating on Thyssenkrupp, arguing that the spin-off will simplify the conglomerate structure and unlock hidden value. That conviction stood out on a day when the DAX lost more than 1%. Yet the stock itself slipped 3.6% to €10.68, pulling back from Thursday’s close of €11.07.
The steel division continues to act as a drag. A so-called “heatwave lull” — weak wind and solar generation combined with high cooling demand — has pushed day-ahead electricity prices higher, squeezing energy-intensive mills. Meanwhile, the industry is locked in protracted negotiations over the future design of the emissions trading system, with no clear decisions in sight.
Technically, the share price still looks solid. At €10.68 it trades roughly 7% above its 200-day moving average and holds above the 50-day line at €10.53. The relative strength index stands at 47, suggesting neither overbought nor oversold conditions. The 52-week high of €13.24, however, remains nearly 20% away — and whether the Materials Services listing can drive a rally toward that level depends on when the group provides concrete details on the IPO timeline.
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