Thyssenkrupp’s Earnings Surge Masks Dual Restructuring Challenges Across Two Continents

Thyssenkrupp’s turnaround narrative gained real traction in the second quarter of fiscal 2025/2026, as adjusted EBIT rocketed to €198 million from a paltry €19 million a year earlier. The marine systems division led the charge, with order intake jumping 32% to €10.6 billion. Yet even as the numbers improve, management is fighting battles on two fronts: one in Beijing, the other in rural Indiana.

Chief executive Miguel Ángel López Borrego is currently in China alongside Germany’s economy minister, Katherina Reiche, on a multi-day trip covering Peking and Guangzhou. The itinerary centres on securing raw materials and promoting green technologies under the group’s “ACES 2030” strategy. At the same time, the company was also flying its flag at the Baader “The Finest CEElection Equity Investor Conference” in Warsaw — a deliberate show of strength from a conglomerate still deep in restructuring.

Back in the real economy, Thyssenkrupp confirmed on 26 May 2026 that it will close its production site in Terre Haute, Indiana. The facility, run by subsidiary Thyssenkrupp Presta North America, will be wound down by 31 March 2027, with around 230 jobs lost. Chassis components will be transferred to Thyssenkrupp Bilstein of America in Hamilton, Ohio. COO Viktor Molnar described the consolidation as a necessary step to simplify U.S. operations and safeguard long-term market position.

Should investors sell immediately? Or is it worth buying Thyssenkrupp?

Investors have cheered the operational improvements. The stock closed at €11.46, roughly 60% above its March low of €7.15 and about 28% higher than a month ago. It also trades more than 25% above its 50-day moving average. But the relative strength index sits at 88.7, flashing an overbought warning that typically precedes short-term pullbacks.

Analyst sentiment is split. Deutsche Bank rates the shares a “Buy” with a €14.50 target, and Jefferies also has a “Buy” at €13.00. JPMorgan is neutral with an €11.80 target, while DZ Bank merely rates the stock a “Hold” with a fair value of €11.00. Meanwhile, asset manager Amundi trimmed its voting rights stake to 4.69% from 5.10%, a small but telling reduction.

For the full year 2025/2026, Thyssenkrupp forecasts adjusted EBIT between €500 million and €900 million — a wide range that underscores the uncertainties still embedded in the overhaul. Free cash flow before M&A is expected to remain negative by up to €600 million, weighed down by restructuring payouts in Automotive Technology and Steel Europe. Whether the China talks yield concrete partnerships or the Indiana closure accelerates cost savings will become clearer in the coming months, but for now the market is betting the pieces are falling into place.

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Thyssenkrupp Stock: New Analysis - 27 May

Fresh Thyssenkrupp information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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