A major new contract secured by its hydrogen subsidiary, Thyssenkrupp Nucera, has provided a much-needed boost for the Essen-based industrial conglomerate. This positive operational development arrives against a backdrop of stalled negotiations concerning its struggling steel division and a market environment weighed down by geopolitical tensions.
The company announced over the weekend that Nucera had finalized an agreement with the Spanish energy firm Moeve. The contract involves supplying electrolyzers with a total capacity of 300 megawatts for a planned facility in Andalusia. As a direct result of this deal, Nucera has significantly raised its order intake forecast for the current financial year. This news serves as a crucial counterpoint to the profit warning issued just weeks earlier on March 17, which had cited rising project costs and investment delays.
Investors responded with measured relief. Thyssenkrupp shares advanced by 3.65 percent to €8.00 in Monday’s trading, pulling back somewhat from the 52-week low they had established the previous Friday.
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Steel Restructuring Loses Momentum
Despite the hydrogen sector’s success, the restructuring of Thyssenkrupp’s core operations remains a complex challenge. Talks with Indian conglomerate Jindal Steel regarding a potential joint venture or partial sale of the steel unit, Thyssenkrupp Steel Europe, have encountered significant obstacles. Unresolved questions about long-term investment security and strong opposition from employee representatives concerning job preservation are slowing progress. Management is reportedly preparing a contingency plan internally in case the partnership talks ultimately collapse.
Mounting Time Pressure and External Headwinds
The timeline for the group’s broader transformation is becoming increasingly tight. A strategic decision regarding the Materials Services trading division is due by the end of March. Options under consideration include an outright sale, a spin-off, or a public listing, all aimed at generating capital to fund the group’s green transition.
External factors are also applying pressure. The threat of escalation in the Iran conflict, for instance, is dampening overall risk appetite within the industrial sector, which in turn limits the potential for significant share price appreciation. The management team is expected to provide concrete updates on the status of the steel negotiations and any potential “Plan B” no later than the release of the half-year report on May 12.
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