thyssenkrupp (TKA) investor relations material

Executive summary

• Transformation towards a financial holding structure is underway, with significant restructuring and portfolio streamlining across segments, targeting completion by 2030.

• Order intake for the first half rose 32% year-over-year to €10.6 billion, mainly due to major contracts at Marine Systems, though full half-year order intake was down 11% due to prior-year major orders.

• Adjusted EBIT surged to €198 million in Q2 and €409 million for six months, driven by operational improvements and cost efficiencies, despite a net loss due to high restructuring expenses at Steel Europe.

• Major portfolio actions included the sale of Automation Engineering, the spin-off and listing of Marine Systems (TKMS), and preparations for a new HKM shareholder structure.

• Green transformation advanced through the European Resilience Alliance, clean hydrogen initiatives, and bluemint steel supply agreements.

Financial highlights

• Q2 sales were €8.4 billion, down 2% year-over-year; six-month sales declined 5% to €15.6 billion.

• Adjusted EBIT rose to €198 million in Q2 (2.4% margin), and €409 million for six months (2.6% margin).

• Net income for Q2 was –€11 million; six-month net income at –€345 million, impacted by restructuring at Steel Europe.

• Free cash flow before M&A was –€327 million in Q2 and –€1.8 billion for six months; net financial assets at €2.8 billion; available liquidity at €4.6 billion.

• Workforce reduced by approximately 2,000 FTEs year-to-date.

Outlook and guidance

• Full-year guidance for adjusted EBIT (€500–900 million), free cash flow before M&A (€–1.6 to –1.2 billion), and net income (€–800 to –400 million) confirmed.

• Sales expected to be –3% to 0% year-over-year, mainly due to adjustments at Decarbon Technologies and Steel Europe.

• Segment guidance: Automotive Technology €225–325 million, Decarbon Technologies €0–100 million, Materials Services €125–225 million, Steel Europe €275–375 million, Marine Systems €100–150 million.

• Investments to remain at the lower end of €1.4–1.6 billion range, focused on DRI plant at Steel Europe and targeted growth.

• Management expects to reach the upper end of EBIT guidance range, despite macro uncertainties.