tk Accelis - CMD Feedback

Research evidence excerpt

tk Accelis - CMD Feedback

UpdateMEuropean Materials disposals and bolt-on M&A in North America and Solutions.

Financials: Management indicated that FY2025/26 adjusted EBIT should be toward

the upper end of thyssenkrupp’s €125-225m guidance range; we forecast €200mn

and Visible Alpha consensus €197mn. The medium-term 4-5% adjusted EBITDA

margin target is supported by improvement across all three divisions (outlined

below) and a reduction in corporate and consolidation costs from €93m in

FY2024/25 toward a €60-70m standalone cost base, implying €20-30m of savings.

The business remains capex-light, with medium-term capex guided at 0.5-1.0% of

sales, year-end leverage targeted below ~1.0x and NWC expected to remain around

historical levels. tk accelis has secured a €1.7bn asset-based lending facility with an

initial three-year term and two one-year extension options; the facility is expected to

become effective in October 2026, with the thyssenkrupp cash pool terminated

before listing. The group generated €829m of cumulative FCF over FY2022/23 –

FY2024/25, although this benefited materially from working-capital release during

the downturn; independence should allow a greater share of future cash generation

to be reinvested in organic growth and M&A. Management targets a 30-50%

dividend payout, with the first payment expected in 2028 based on FY2026/27

earnings.

Materials business unit - Overview: Materials is the largest business unit (€7.0bn

of FY2024/25 sales, €94mn adj. EBITDA, 1.4% margin), combining distribution,

trading and manufacturing. Distribution provides scale and cash conversion, trading

is asset-light, while manufacturing offers margin expansion opportunities. Materials

operates ~240 branches and 49 manufacturing sites, serving ~225,000 customers