The stark contrast at Thyssenkrupp could not be more pronounced. While executives showcase cutting-edge hydrogen pipeline steels at a Düsseldorf trade fair, production lines at core steel plants stand silent. This divergence highlights the immense challenge facing the German industrial giant: navigating a crucial strategic overhaul while being battered by immediate market forces.
A flood of cheap steel imports is applying intense operational pressure. The European market saw imports surge by 50 percent in 2025, forcing Thyssenkrupp to implement temporary production halts. Facilities in Gelsenkirchen and the French town of Isbergues have been idled, affecting approximately 1,200 workers. The Isbergues plant faces a complete shutdown from June through September. Hopes for relief now rest on anticipated EU protective measures, with a decision on stricter import quotas and potentially doubled tariffs expected by July. Even if approved, such measures would not take effect until later in the summer, offering no quick fix for the current standstills.
Against this difficult backdrop, management is pushing ahead with a long-demanded portfolio simplification. A significant step was finalized in April with the sale of the Automation Engineering unit to Munich-based robotics firm Agile Robots SE. The business, which reported triple-digit million-euro revenues and employed about 650 people, now operates as Krause Automation. This move allows Thyssenkrupp to refocus its automotive activities strictly on core areas like chassis technology and forging.
The company’s share price reflects the prevailing market skepticism. Trading recently at 8.54 euros, the stock is down nearly twelve percent since the start of the year, though it remains about 19 percent above its March low. This performance underscores the market’s tepid response to strategic moves amid broader sector headwinds. The wider industrial landscape is under strain, with blocked shipping routes in the Strait of Hormuz driving up logistics costs and creating further uncertainty.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
For patient investors, Thyssenkrupp’s potential value levers are substantial. The most significant is the group’s retained 16.2 percent stake in elevator manufacturer TK Elevator. Major owners are evaluating an initial public offering in the second half of 2026, which could value the former crown jewel at up to 25 billion euros. A successful listing would inject much-needed capital, enabling investments in green steel production and accelerating debt reduction. Furthermore, the naval subsidiary TKMS provides a stable foundation with an order book brimming at 18.7 billion euros.
Analyst sentiment offers a glimmer of optimism. The average price target sits at 10.90 euros, with Jefferies notably more bullish at 13 euros. The upcoming interim report on May 12 will be scrutinized for details on divestments and any update regarding the pivotal elevator IPO timeline.
The coming months present a critical test. The company’s ability to weather the import storm until potential EU tariffs take effect, while concurrently advancing its high-value portfolio restructuring, will determine its near-term trajectory. The path to sustainable profitability remains steep, hinging on both external policy support and the successful execution of internal strategic plans.
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