Thyssenkrupp's stock soars 135% despite steel division struggles and €800M loss forecast

Thyssenkrupp AG has witnessed its stock price skyrocket by 135% over the past year, closing at €11.29 on Friday. The industrial giant also declared a dividend payout of €0.15 per share, despite ongoing financial struggles in its stock market-listed steel division. Meanwhile, discussions persist over the potential sale of Thyssenkrupp Steel Europe to Jindal Steel International.

The company's robust stock market performance aligns with a record order backlog of €18.2 billion. However, its stock market-listed steel division, Thyssenkrupp Steel Europe (TKSE), remains a financial burden, with no separate stock market listing and a history of losses. Management plans to reduce production capacity to between 8.7 and 9 million tons of shipped steel as part of restructuring efforts.

For the 2025/2026 fiscal year, Thyssenkrupp anticipates a net loss of €400–800 million, largely due to restructuring costs in the steel sector. The group has reaffirmed its long-term strategy under the 'ACES 2030' model, highlighting the successful IPO of its marine division, TKMS, as a positive development. TKMS shares have performed well since listing, trading above their issue price and joining the MDAX.

Despite the company's financial challenges, shareholders recently approved a €93 million dividend payout. This decision sparked protests from several hundred employees, supported by the IG Metall union, which criticized the move as weakening the company's core operations.

Thyssenkrupp's stock has surged by 133.7% over the past year, with a 21.74% gain in the last month alone. The company continues negotiations over the sale of its struggling steel division while pushing ahead with restructuring plans. The outcome of these efforts will shape its financial future in the coming years.