thyssenkrupp (1K) | Buy | Steel potential (call feedback)

研报英文原文证据摘录

thyssenkrupp (1K) | Buy | Steel potential (call feedback)

thyssenkrupp Buy | Target Price: EUR15.00

Main takeaways from the conference call

Steel becoming a valuable asset again

During the conference call following yesterday’s better-than-expected Q2 2025/26 results, CEO

Miguel Lopez commented on the recent decision to pause discussions with Jindal Steel,

announced a few days earlier. He highlighted three major developments that have led

management to reassess the valuation of Steel Europe in ongoing discussions:

 the restructuring agreement reached with unions in September,

 the agreement with Salzgitter regarding HKM, and

 the upcoming implementation of a new TRQ system in the European Union.

While management remains open to potential alternative offers (including possible interest from

Flacks Group), the group is now primarily focused on executing the restructuring plan and creating

value through these three supportive pillars. On this basis, management aims to return Steel

Europe to positive free cash flow generation within the next two to three years.

Adjusted EBIT expected at the upper end of guidance

Alongside the results release, thyssenkrupp lowered its sales guidance to -3% to 0% (from -2% to

-1% previously), which likely explains part of the weakness in the share price. The revision was

mainly driven by contract postponements at Decarbon Technologies and an unfavourable

product mix at Steel Europe.

However, strong cost control and ongoing restructuring measures continued to support

profitability in Q2, following an already solid Q1 performance, bringing H1 adjusted EBIT to

EUR409m. With restructuring benefits increasing and a more supportive environment for steel

expected ahead, the CFO confirmed during the call that management is targeting the upper end