Thyssenkrupp Steel Arm Sets Sights on 1.2 Billion Euro EBITDA as EU Tariff Shield Takes Shape
Published on 09/29/2026 at 04:50 | Editorial boerse-global.de
Thyssenkrupp's European steel division used a Capital Markets Day to lay out a medium-term profitability target that would more than triple its current earnings power, pairing internal restructuring pledges with the prospect of external trade protection.
Management at Steel Europe is aiming for an adjusted EBITDA of at least EUR 1.2 billion over the medium term, alongside an adjusted EBITDA margin exceeding 11 percent. The bar is set high relative to where the business stands today: for the fiscal year ending September 30, 2026, the group expects the European steel subsidiary to post an adjusted operating result of roughly EUR 400 million. In fiscal 2024/25, adjusted EBITDA came in at EUR 384 million.
Capacity Cuts and Trade Barriers as Twin Levers
According to company statements, the planned margin expansion rests on several pillars. Alongside capacity reductions and job cuts, the division is counting on tailwinds from higher trade barriers.
That external support has been taking shape in Brussels. Reuters reported on September 18 that the European Union had announced provisional safeguard measures covering grain-oriented electrical steel and downstream products. Those steps are expected to benefit Thyssenkrupp's steel unit by easing competitive pressure from imports. The measures include binding quotas and minimum prices on imports, while the Commission's official investigation continues. Their stated purpose is to shield the European market from price distortions caused by cheap foreign supply, offering domestic producers tangible relief on the pricing front.
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The medium-term plan builds on broader changes already underway at the group. By cutting overcapacity and adjusting staffing, management intends to make the division more resilient — a restructuring path now given concrete financial contours.
Jefferies Sticks With Buy Rating
Analysts have also weighed in on the industrial conglomerate's shares. Late last week, Jefferies reportedly reaffirmed its "Buy" rating and kept its price target at EUR 13.
Trading on the day of the Capital Markets Day put the stock at EUR 15.48, a modest gain of 0.5 percent. That leaves the paper just 2.4 percent below its 52-week high of EUR 15.86. Investors, for now, appear to be rewarding the combination of internal cost commitments and external trade cover for the European steel business.
The picture was less upbeat a day earlier. On Monday, the shares closed at EUR 15.34, a slight decline of 0.3 percent, as the market initially greeted the medium-term targets with restraint.
Whether the group can extend the positive momentum depends heavily on execution — delivering the operational savings and earnings gains at Steel Europe that the new targets demand. Higher margins are essential for the storied division to absorb the costs of its transformation and reclaim a leading position in international competition.
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