Finance
Thyssenkrupp warns of deep net loss in 2026 on steel restructuring costs
Published by Global Banking and Finance Review
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Thyssenkrupp predicts a significant net loss in 2026 due to steel unit restructuring costs, impacting its financial stability.
By Christoph Steitz and Tom Käckenhoff
ESSEN, Germany, Dec 9 (Reuters) - Thyssenkrupp expects to swing to a net loss of up to 800 million euros ($931 million) in 2026, blaming restructuring provisions at its steel unit, which the German conglomerate is trying to sell to India's Jindal Steel International.
The German conglomerate is engaged in talks with Jindal Steel that could result in a firm bid for Thyssenkrupp Steel Europe (TKSE) after due diligence has been completed.
Thyssenkrupp has for years tried to divest its steel division, Germany's largest, but efforts have collapsed mainly due to pension liabilities of 2.7 billion euros that are tied to the business.
HIGH IMPAIRMENTS DUE TO ASIAN RIVALRY, TARIFFS
TKSE caused impairments of 600 million euros in the past fiscal year, Thyssenkrupp said, due to exposure to fierce Asian competition, U.S. tariffs and a generally weak European economy, a trend that has impacted most of Thyssenkrupp's units.
Frankfurt-listed shares in the group sank 4% in early trading, with market participants pointing to the disappointing outlook.
Noting a challenging market environment, Thyssenkrupp said that free cash flow before M&A - closely watched by investors to determine the group's ability to earn money - would be at a negative 300 million to 600 million euros in 2026.
This compares with 363 million euros in 2025, a third consecutive year of positive free cash flow.
Adjusted operating profit is expected at 500 million to 900 million euros in 2026, below the 918 million forecast in a company-provided poll.
Thyssenkrupp, which recently spun off a minority of its warship division TKMS and is looking to sell stakes in all of its businesses, proposed to keep its dividend unchanged at 0.15 euros per share for 2025 compared with 2024.
($1 = 0.8593 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Paul Simao, Miranda Murray and Bernadette Baum)
Net loss occurs when a company's total expenses exceed its total revenues, resulting in a negative financial outcome for a specific period.
Restructuring costs refer to expenses incurred when a company reorganizes its operations, which can include layoffs, facility closures, and other costs associated with changing the company's structure.
Adjusted operating profit is a measure of a company's profitability that excludes certain expenses, such as one-time costs or non-operational items, to provide a clearer picture of ongoing performance.
Pension liabilities are the financial obligations a company has to pay pension benefits to its employees in the future, which can significantly impact its financial statements.
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