Thyssenkrupp reports strong start to fiscal year 2024/2025 amid challenges

Thyssenkrupp has announced a positive start to fiscal year 2024/2025, with significant improvements in key financial indicators despite a challenging market environment. Order intake in the first quarter rose by more than 50% year-on-year to €12.5 billion, driven by major orders in the Marine Systems segment. Adjusted EBIT improved to €191 million, bolstered by the APEX 2.0 performance program. Free cash flow before M&A saw a notable increase to €(21) million from €(531) million in the prior-year period, allowing Thyssenkrupp to raise its full-year forecast for free cash flow before M&A to up to €300 million from its previous expectation of between €(400) million and €(200) million.

However, Thyssenkrupp continues to face a highly volatile market environment, with ongoing macroeconomic uncertainties, weaker demand in key sectors, and price pressures impacting sales. Group sales for the quarter were slightly lower at €7.8 billion, reflecting these challenges, particularly in the Automotive Technology, Materials Services, and Steel Europe segments. CEO Miguel López acknowledged these difficulties, stating, “We performed well in a difficult market environment, but we remain aware of the structural and economic challenges ahead. Our transformation efforts must continue at full pace to secure long-term competitiveness.”

The group remains committed to its restructuring initiatives, particularly in Steel Europe, where it aims to establish an independent, high-performing steel company. Meanwhile, Marine Systems is advancing its spin-off process to capitalize on a growing order backlog and increasing global security concerns. López emphasized, “We have months of intensive work ahead, particularly in our Steel and Marine Systems businesses. The successful restructuring of these units is crucial for our future growth and stability.”

Source and Photo: Thyssenkrupp

Despite these ongoing challenges, Thyssenkrupp reported a significant reduction in its net loss to €33 million, compared to €305 million in the prior-year quarter. CFO Jens Schulte highlighted that structural efficiency measures are already yielding tangible results, particularly in cost reduction and operational efficiency.

Looking ahead, Thyssenkrupp expects continued market uncertainty but confirms its adjusted EBIT forecast of €600 million to €1 billion. The company remains focused on returning to profitability, targeting net income between €100 million and €500 million for the full fiscal year, though it acknowledges that external economic conditions will play a crucial role in achieving this goal.