Thyssenkrupp Stock: Major Restructuring Amid Market Decline

Thyssenkrupp's stock experienced a notable downturn, dropping 1.6% to €4.46 on XETRA, with trading volume reaching 868,834 shares. This decline positions the stock approximately 21.68% below its recent 52-week high of €5.69, despite analysts maintaining a cautiously optimistic outlook with an average price target of €5.13. The company's financial trajectory shows signs of improvement, with losses narrowing from €3.23 per share in the previous year to €1.70 per share in 2024, while revenue held steady at €8.81 billion. Analysts project a return to profitability with an expected earnings per share of €0.666 in the coming year, alongside a modest increase in dividend from €0.150 to €0.158 per share.

Green Steel Transformation

The industrial giant is embarking on an ambitious transformation of its steel division, planning to reduce its workforce by approximately 11,000 positions from the current 27,000 employees through elimination or spinoff. Central to this restructuring is a €3 billion investment in a new climate-friendly steel production facility in Duisburg, designed to replace two existing blast furnaces. This forward-looking project, supported by €2 billion in government funding from federal and state sources, will initially operate on natural gas before transitioning to hydrogen, marking a significant step toward sustainable steel production.