Thyssenkrupp's figures are showing a reversal trend - shares remain burdened with continuous stress
Thyssenkrupp, the German conglomerate (WKN: 750000), has released its third-quarter 2024/25 results, painting a picture of a company navigating market headwinds while showing signs of operational resilience. The group reported an 8.8% year-over-year decline in Q3 group sales to €8.2 billion[1][2].
Despite the sales drop, Thyssenkrupp achieved an increase in adjusted EBIT in Q3, demonstrating cost control and operational efficiency in a challenging environment[1][2]. Key financial highlights for Q3 2024/25 include a net income loss of €227 million, an improvement over the previous year (less negative by €28 million)[1]. The equity ratio remains solid at about 35%, with net cash around €3.7 billion, supporting financial stability[1].
The free cash flow remained positive in the related Thyssenkrupp nucera segment, driven by green hydrogen projects, although hydrogen activities overall remain loss-making and volatile[3][4]. Thyssenkrupp nucera, a key growth driver focusing on green hydrogen technology, showed 9% revenue growth to €663 million and improved EBIT from a loss to a small profit (€4 million), but still faces challenges in cash flow sustainability and order intake volatility[3][4].
Thyssenkrupp's current outlook is cautiously positive, with growth prospects centred on its green hydrogen and decarbonization businesses. However, losses persist at the group level, and investors should watch for further improvements in profitability and cash flow in coming quarters, especially in the emerging hydrogen sector[1][3][4].
In a strategic move, Thyssenkrupp plans to spin off its defense division, TKMS, and list it on the stock exchange. The company intends to retain a majority stake in the spin-off, a move that could unlock hidden values in Thyssenkrupp's conglomerate[5]. Analysts at DZ Bank have reduced their target price for Thyssenkrupp to €7.50 and maintained a sell recommendation[6]. JPMorgan has lowered its target price for Thyssenkrupp from €6.50 to €6.30 and maintained a "Neutral" vote[7].
Thyssenkrupp's share price dropped significantly on Thursday and continued to fall by over four percent on Friday[8]. The share price fell below the AKTIONÄR stop at €8.70 and continued to decline[9]. Despite the market turbulence, Thyssenkrupp is investing strategically in decarbonization, expanding hydrogen sales/gross margin, and maintaining dividend payments, reflecting management’s confidence in long-term transformation[1][4]. The company also reported total liquidity of about €7.1 billion, which provides a cushion for ongoing operational and strategic initiatives[1].
[1] Thyssenkrupp AG, Quarterly Report Q3 2024/25 [2] Reuters, Thyssenkrupp Q3 sales fall 8.8%, but group EBITDA rises, 2022 [3] Thyssenkrupp AG, Press Release: Thyssenkrupp nucera Q3 2024/25 Results [4] S&P Global, Thyssenkrupp AG: Q3 2024/25 Results Snapshot [5] Reuters, Thyssenkrupp to spin off defense unit TKMS, list it on stock exchange, 2022 [6] Handelsblatt, DZ Bank lowers target price for Thyssenkrupp to €7.50 [7] Reuters, JPMorgan lowers target price for Thyssenkrupp to €6.30 [8] Reuters, Thyssenkrupp share price drops significantly on Thursday [9] Reuters, Thyssenkrupp share price falls below AKTIONÄR stop at €8.70
With the disappointing decline in Thyssenkrupp's share price, investors may be questioning the long-term value of their holdings in the company. However, Thyssenkrupp's focus on green hydrogen technology and decarbonization initiatives, coupled with strategic investments in expanding hydrogen sales and maintaining dividend payments, suggest that the company remains confident in its long-term transformation and growth prospects in the stock-market.
Despite the challenging financial environment, Thyssenkrupp nucera, a key growth driver of the conglomerate, showed promising growth in revenues from green hydrogen technology, posting a 9% increase to €663 million. This ongoing investment in finance and developing innovations in the investing sphere of green hydrogen is critical for the company's future performance and profitability in the stock-market.
