Thyssenkrupp recorded restructuring costs for its steel business of €401 million

German industrial group Thyssenkrupp has recorded restructuring costs for its steel business – financing large-scale job cuts – in the amount of €401 million ($477 million). This is stated in the company’s report.

As a result of these costs, the group reported a net loss of €334 million for the first quarter of the 2025/2026 financial year (October-December 2025).

The group’s earnings before interest and taxes (EBIT) in October-December rose to €211 million, compared to €191 million in the same period a year earlier. The group’s sales in the first quarter of the 2025/2026 financial year amounted to €7.2 billion, which was lower than the previous year’s level of €7.8 billion, reflecting the continuing weak market situation.

As noted, the transformation of the group is currently progressing: Thyssenkrupp Marine Systems is successfully positioning itself on the stock exchange, a collective agreement on restructuring has been concluded with Steel Europe (TKSE), and the terms of the future joint steel venture HKM with Salzgitter have been agreed upon, as well as an agreement to sell Automation Engineering to Agile Robots.

Steel Europe continues to consistently implement its strategic reorganization, ThyssenKrupp said. The conclusion of a collective restructuring agreement in December 2025 and the agreement on the terms of the contract with Salzgitter AG in February 2026 mean that two key milestones have been reached.

TKSE plans to sell its shares in HKM to Salzgitter on June 1, 2026.

“Together, these steps form the basis for the gradual implementation of the company’s industrial future concept,” the statement said.

At the same time, Thyssenkrupp said that the recently reached agreement to exit HKM ahead of schedule could lead to even greater losses from the sale.

Despite the challenging economic environment and regulatory uncertainty, construction of the direct reduction plant in Duisburg is continuing. In addition, the group has entered into confidential negotiations with Jindal Steel International regarding the potential sale of its steel division. It is noted that the central element is ongoing due diligence.

It should be recalled that Thyssenkrupp posted good operating results in the 2024/2025 financial year (ended September 30, 2025). Orders increased by 15% year-on-year to €37.7 billion, mainly due to large orders in the marine systems sector. Sales declined 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.