The German industrial giant Thyssenkrupp is navigating a complex set of challenges this March, with a critical element of its green steel strategy encountering unexpected delays. A key hydrogen procurement initiative has been suspended, raising questions about the company’s ability to execute its ambitious transformation plan as scheduled.
Strategic Pivot: Green Hydrogen Procurement Halted
Plans by Thyssenkrupp Steel to source green hydrogen for its Duisburg plant via a tender process have been put on hold. The company stated that submitted bids came in “significantly higher” than anticipated, at levels deemed incompatible with sound economic calculations. Consequently, the procurement procedure has been suspended.
Despite this setback, the corporation remains committed to the core project. Construction of the Direct Reduction Iron (DRI) plant in Duisburg continues. Notably, this facility is designed to operate on natural gas as well, which the company says could reduce CO₂ emissions by approximately 50% compared to traditional blast furnaces. However, the intended hydrogen-based operation now faces potential running costs under current market conditions that appear unsustainable.
The implications extend beyond operations into the political arena. Thyssenkrupp is now engaged in discussions with the German federal government, advocating for adjustments to the state subsidy framework to improve feasibility.
Corporate Overhaul: Materials Services Division Faces Scrutiny
Simultaneously, the most extensive restructuring in the group’s history is underway. A major focus is the Materials Services trading subsidiary. Thyssenkrupp is evaluating multiple strategic options for this unit, including a spin-off, an initial public offering (IPO), or an outright sale. A potential stock market listing has been suggested as a possibility for autumn 2026.
This is no minor divestment. In the 2024/25 financial year, Materials Services reported revenue of 11.4 billion euros and employed over 15,000 people. A critical milestone is now in focus: the division must demonstrate operational improvements by the end of March. This benchmark is considered a prerequisite for defining the next portfolio steps later in the year.
Portfolio Reshaping: Steel Sale Progress and Naval Stability
Confidential discussions regarding the sale of Steel Europe to Jindal Steel International are ongoing, including comprehensive due diligence. Recent months have seen other significant milestones for the steel business: a collective bargaining agreement for steel realignment was reached in December 2025, and a term sheet with Salzgitter concerning the future of HKM was signed in February 2026. The transfer of HKM shares to Salzgitter is scheduled for 1 June 2026.
Providing relative stability within the portfolio is the naval division, Thyssenkrupp Marine Systems (TKMS). Since its stock market listing in October 2025 (with Thyssenkrupp retaining a 51% stake), the unit reported a record order backlog of 18.7 billion euros as of 31 December 2025. This figure includes the largest torpedo contract in the company’s history, awarded by the German Navy.
Financial Performance and Market Sentiment
For the first quarter of the 2025/2026 financial year, group revenue declined by 8% to 7.2 billion euros. Adjusted EBIT, however, increased by 10% to 211 million euros. This was offset by substantial special charges, including restructuring costs at Steel Europe alone amounting to 401 million euros. The bottom line was a net loss of 334 million euros.
Market sentiment remains cautious. Despite a single-day gain of 2.49% to 9.78 euros, the share price shows a weekly decline of 6.61%. Furthermore, the stock is trading below its 50-day moving average (10.72 euros), a signal that many investors are awaiting more concrete evidence of restructuring progress before committing.
The next major test is already on the calendar. Thyssenkrupp will publish its half-year report on 12 May 2026. Market attention will likely center on three key developments: the status of negotiations with Jindal Steel, the operational improvements at Materials Services due by end-March, and the planned HKM share transfer on 1 June 2026.
