Thyssenkrupp warns of deep net loss in 2026 on steel restructuring costs

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)