Thyssenkrupp Reshapes Auto and Steel Units as Analysts Split on Valuation
Published on 10/01/2026 at 16:11 | Editorial boerse-global.de
Thyssenkrupp is pressing ahead with a twin restructuring of its core businesses, pairing fresh job reductions in its automotive chassis operations with an ambitious profitability target for its steel division. The two moves, unveiled within days of each other, sketch a group narrowing its focus and trimming costs on multiple fronts.
The Essen-based industrial group said its Thyssenkrupp Automotive Technology unit will cut roughly 160 to 180 positions at its chassis business, affecting the Essen and Ennepetal sites. According to Reuters, the reductions fall mainly on development and engineering functions, while shock absorber production at the long-established Ennepetal plant will continue at full capacity. Management intends to negotiate the steps with employee representatives and is targeting January 1, 2027, for the reorganization to take effect. The division is responding to persistent cost pressure and structural shifts among automakers.
Steel Arm Sets a 1.2 Billion Euro Bar
The chassis announcement follows sweeping decisions in the European steel business. At a capital markets day on Monday, thyssenkrupp Steel laid out medium-term ambitions of at least EUR 1.2 billion in adjusted EBITDA, paired with an adjusted EBITDA margin of at least 11 percent. The division also aims to return to positive free cash flow. More than EUR 800 million of the earnings improvement is to come from internal measures. In the current fiscal year, the unit expects around EUR 400 million in adjusted EBITDA. Management did not name a specific date for reaching the medium-term goals.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
Regulatory support has arrived in parallel. The European Union introduced provisional safeguard measures on Friday, combining import quotas and minimum prices for certain electrical steels. The steel division had previously welcomed the European Commission's provisional protective measures for grain-oriented electrical steel and related products.
Shares Slip as Macro Worries Weigh
The equity has come under pressure in the interim. On Thursday, the stock fell 4.5 percent to EUR 13.85, dragged down by a weak German market environment. According to dpa-AFX, resurgent inflation concerns and fears of rising interest rates weighed on exchanges. No company-specific news accounted for that day's decline, which interrupted a phase shaped by strategic realignments as investors took profits, particularly in cyclical industrial names, amid macroeconomic uncertainty.
A day earlier, the shares had eased 1.6 percent to EUR 14.28. Despite the recent consolidation, the stock has gained 53 percent since the start of the year.
Analysts Divided After Capital Markets Day
Opinion on the reorganization is mixed. Deutsche Bank Research reaffirmed its "Buy" rating on Tuesday following the steel division's capital markets day, with a price target of EUR 18. Analyst Bastian Synagowitz pointed to the steel activities as the central share price driver for the group as a whole. Jefferies had already maintained its "Buy" rating with a price target of EUR 13 on September 25, when analyst Tommaso Castello kept the classification unchanged. JPMorgan struck a more cautious tone the same day, leaving its rating at "Neutral" with a price target of EUR 15.
Ad
Thyssenkrupp Stock: New Analysis - 1 October
Fresh Thyssenkrupp information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
