Thyssenkrupp shares are caught in a tug-of-war, pulled in opposite directions by its disparate business units. While its naval division secures strategic partnerships and a massive order backlog, the industrial conglomerate’s foundational steel and emerging hydrogen businesses face severe headwinds. This fundamental divide is defining the company’s challenging restructuring path.
The naval subsidiary, Thyssenkrupp Marine Systems (TKMS), has taken a significant step to future-proof its operations. This week, it signed a cooperation agreement with Canadian lithium developer E3 Lithium. The partnership aims to integrate critical minerals directly into the supply chain for submarines, specifically for the Canadian Patrol Submarine Project. Thomas Keupp, TKMS Chief Sales Officer, stated that such minerals are indispensable for future submarine technology. The deal with E3 Lithium, whose Clearwater Project could eventually supply up to 36,000 tonnes of battery-grade lithium annually, secures sustainable access and deepens German-Canadian industrial ties.
This news followed a strong market reaction, with Thyssenkrupp stock gaining around 9 percent on Wednesday. Although it gave back some of those gains, trading recently around EUR 8.25, trading volume remained elevated. The marine business provides a solid anchor, entering the year with an order backlog of EUR 18.7 billion. TKMS is now the sole remaining bidder for Germany’s EUR 26.2 billion F127 frigate program.
Elsewhere, the picture darkens considerably. The traditional steel segment is under siege. Thyssenkrupp Steel Europe has formally requested the European Commission to better shield the electrical steel sector from cheap Asian imports. Since 2022, imports from Asia have tripled, with prices often below European production costs. Asian suppliers now control over half of the European market volume for grain-oriented electrical steel, a critical component for power grid expansion.
The pressure is immediate. Production has already been curtailed at sites in Gelsenkirchen and Isbergues, France, threatening approximately 1,200 jobs. The plant in Isbergues is planning to suspend production for four months starting in June, affecting about 600 employees. While Thyssenkrupp has appealed to Brussels for help, potential new EU protective rules are not expected until July 2026 at the earliest—too late to avert the imminent French production pause.
Adding to the conglomerate’s woes, its hydrogen venture, Nucera, has issued a profit warning. Unplanned retrofit costs for delivered modules and a cancelled contract in the US have forced the subsidiary to forecast an operating loss between EUR 30 and 80 million for the current year. Investment appetite in the chemical industry, a primary buyer for electrolysis technology, is also waning due to rising CO₂ costs and high precursor prices.
Amid these crises, management is pushing ahead with portfolio streamlining. The Automation Engineering unit was sold to the Agile-Robots Group in early April. Attention is now turning to the remaining 16.2 percent stake in elevator manufacturer TK Elevator. A potential IPO or direct sale in the second half of 2026 could unlock significant value.
Financially, the contrast is stark. The stock reflects the corporate split, down roughly 12 percent year-to-date and nearly 15 percent over the past year, with volatility exceeding 60 percent. Yet, the company’s adjusted operating profit for the first quarter rose to EUR 211 million despite a 10 percent drop in revenue, leading the executive board to confirm its annual forecast.
All eyes are on the next interim report due on May 12, 2026. Management is expected to provide concrete updates on the hoped-for European trade protections for electrical steel and the status of ongoing partnership talks with Indian steelmaker Jindal Steel. For now, Thyssenkrupp’s trajectory remains a tale of two companies: one sailing forward on defense contracts and strategic minerals, the other mired in industrial and competitive crises.
