A conglomerate discount meets a green-tech option: thyssenkrupp’s value unlock hinges on exiting steel and scaling hydrogen/defense winners.
Overview
thyssenkrupp is executing one of Europe’s most complex industrial restructurings, aiming to unlock value by evolving into a more agile, decentralized “Group of Companies.” It operates across Materials Services, Decarbon Technologies, Automotive Technology, Steel Europe, and Marine Systems, with a portfolio logic of separating mature/capital-intensive assets (notably steel) while concentrating resources on higher-growth decarbonization technologies and durable defense programs. FY24/25 sales were €32.8B with record order intake of €37.7B, driven by major naval contracts. Q1 FY25/26 showed sales down but adjusted EBIT up, highlighting APEX-driven efficiency gains amid restructuring. The equity remains discounted due to the steel overhang and pension liabilities, but stand-alone assets (nucera, Marine Systems) provide meaningful re-rating potential if execution holds.