Thyssenkrupp expects significant losses in fiscal year 2025/2026

German industrial conglomerate Thyssenkrupp expects its net loss to reach €800 million in the 2025/2026 financial year (ending September 30, 2026), Reuters reports.

The company’s expectations are based, among other things, on the costs of restructuring its steel division, which it is seeking to sell to India’s Jindal Steel. A final offer may be received from the latter after a comprehensive review.

As noted by Thyssenkrupp, its steel division suffered losses of €600 million in the last fiscal year due to fierce competition from Asian manufacturers, US tariffs, and the general weakness of the European economy, which affected most of the group’s divisions.

“Many of our customer industries are under considerable pressure. Tariffs are exacerbating the situation, as anything that fails to make it through America’s tariff wall is looking for new sales markets – especially in Europe,” said Thyssenkrupp CEO Miguel Lopez.

According to the German conglomerate’s forecasts, adjusted operating profit next year will be €500-900 million.

According to the company’s statement, Thyssenkrupp showed good operating results in the 2024/2025 financial year. Orders increased by 15% year-on-year to €37.7 billion, mainly due to large orders in the marine systems sector. Sales fell to €32.8 billion (€35 billion in the previous fiscal year) due to fluctuations in demand and price dynamics, but adjusted earnings before interest and taxes (EBIT) increased by 13% year-on-year.

According to estimates by Marie Jarony, head of Thyssenkrupp’s steel division, the restructuring agreement, which involves cutting or outsourcing approximately 11,000 jobs, will cost the company hundreds of millions of euros. The amount will depend on the number of employees who accept one offer or another.