Thyssenkrupp's Steel Spin-Off Gets a Nod From Its Biggest Shareholder as JPMorgan Trims Its Caution
Published on 10/16/2026 at 13:01 | Editorial boerse-global.de
The Krupp Foundation, which owns roughly 21% of Thyssenkrupp, has signalled that conditions are ripe for spinning off the group's steel division. Chairwoman Ursula Gather described a "good window of opportunity" on Wednesday, pointing to progress in the restructuring effort and the sale of HKM, along with stronger protection for Europe's steel industry. Coming from the company's largest shareholder, the remark carries weight — but a favourable window is an opportunity, not a completed transaction.
Gather's reasoning stitches together two distinct threads: internal changes at the steel unit and a more supportive external environment. The restructuring work and the HKM divestment fall into the first category; European trade defences fall into the second. Both, in her view, make an independent future for Thyssenkrupp Steel Europe more achievable. Investors would be premature to treat that prospect as a done deal.
A Higher Target, an Unchanged Verdict
On the same day, JPMorgan lifted its price target on Thyssenkrupp from EUR 15 to EUR 17 while keeping its rating at "Neutral." That combination is the more telling detail. A raised target does not amount to a more bullish overall call on the stock.
The analysts cited expected steel price increases and an accelerating earnings trajectory for European steelmakers in the fourth quarter and into 2027. Those expectations describe the sector backdrop — not results Thyssenkrupp has already booked, and not proof that company-specific problems have been resolved. A friendlier steel market could widen the group's room to manoeuvre and smooth a reorganisation. How much of that tailwind actually reaches Thyssenkrupp's bottom line is a question only the operating numbers can answer.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
Concrete Steps in India and Beyond
Further from the steel debate, Thyssenkrupp's automotive arm is building out its engineering footprint. On 8 October, Thyssenkrupp Automotive Technology opened a development centre for chassis technologies in Pune, where more than 120 engineers are already at work. Management intends to grow that team beyond 300 staff over the medium term. The distinction matters: the centre is open and staffed today; the expansion remains a plan.
That project sits alongside a collaboration agreed on Wednesday with Inovance Automotive covering steer-by-wire technology. The partners aim to speed up development and industrialisation in China first, with other international markets to follow. The arrangement rests on a memorandum of understanding — a strategic framework rather than realised business.
Defence procurement adds another strand. Also on 8 October, the Bundestag's budget committee approved the purchase of four additional MEKO A-200 frigates from Thyssenkrupp subsidiary TKMS. Combined with previously authorised vessels, the programme now covers eight frigates, with total costs of around EUR 11.6 billion according to Deutschlandfunk. That figure describes the procurement programme's projected outlay — it is not a reported profit metric for Thyssenkrupp, nor does it settle the question of the group's future structure.
What December Will Show
For all the activity across the divisions, the decisive test remains operational delivery. A larger engineering workforce is not yet evidence of higher earnings; its economic value depends on whether added capacity translates into successful development and industrialisation. Likewise, a supportive foundation and a higher analyst target do not substitute for proof that the individual businesses are making headway.
The next fixed date for assessing progress is 8 December, when Thyssenkrupp plans to publish its 2025/2026 annual report. Until then, the mix of sector optimism, a tangible engineering build-out, a strategic handshake and a shareholder's encouraging words justifies attention — but not an unqualified positive verdict. What counts is whether capacity and intent turn into economic results.
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