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Thyssenkrupp Ag (OTC) (TKAMY)
OTHER OTC:TKAMY
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thyssenkrupp AG
(OTC:TKAMY)
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Rating:50Neutral
Price Target:
$12.50
▲(18.15% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak cash flow conversion (materially negative TTM free cash flow) and earnings-call guidance pointing to continued net losses and negative free cash flow amid restructuring. Offsetting factors include a strengthened, low-leverage balance sheet and some operational improvement, while technicals are mixed and valuation looks demanding with a high P/E and modest yield.
Positive Factors
Conservative balance sheet / low leverage
A materially lower debt-to-equity ratio provides durable financial flexibility to fund restructuring, green investments and working-capital needs without forcing asset sales. Low leverage reduces interest burden and increases resilience during cyclic downturns, supporting a sustainable turnaround path.
Large, long-duration Marine Systems backlog
An EUR 18.7bn defense backlog delivers multi-year revenue visibility and reduces cyclicality for that segment. This structural backlog supports predictable future cash flows, underpins segment-level margin stability, and provides time to execute broader corporate restructuring without immediate revenue shortfalls.
Active portfolio reshaping (spin-offs, divestments)
Moving to spin-offs or targeted divestments is a structural strategy to simplify the group, sharpen management focus, and unlock asset-level value. Successful execution could improve capital allocation, reduce conglomerate discount and create more investable, operationally coherent businesses over the medium term.
Negative Factors
Weak free cash flow / cash conversion
Sustained negative or volatile free cash flow limits the company's ability to fund capex, restructure, and reduce debt without asset disposals or external financing. Weak cash conversion makes reported earnings less reliable as an indicator of financial health and constrains durable reinvestment capacity.
Shrinking revenue and thin margins
Persistent top-line decline and low gross margins undermine operating leverage and leave limited room to absorb cost shocks. Thin margins mean modest profits depend on tight execution and favorable input prices, making sustainable margin expansion and durable earnings growth uncertain.
Large restructuring charges and execution risk
Heavy restructuring and impairment charges create cash demands and execution risk over multiple quarters. Large one-offs and ongoing restructuring increase near-term cash burn and raise uncertainty about the timing and magnitude of benefits, pressuring balance-sheet flexibility and investor confidence during the transition.
thyssenkrupp AG (TKAMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.14B
Dividend Yield52.22%
Average Volume (3M)62.99K
Price to Earnings (P/E)44.5
Beta (1Y)0.53
Revenue Growth-4.44%
EPS GrowthN/A
CountryUS
Employees97,360
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.68
Shares Outstanding622,531,740
10 Day Avg. Volume22,179
30 Day Avg. Volume62,993
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)0.75
Price to Sales (P/S)0.22
P/FCF Ratio243.45
Enterprise Value/Market Cap0.45
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda1.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
thyssenkrupp AG Business Overview & Revenue Model
Company Descriptionthyssenkrupp AG operates in the areas of automotive technology, industrial components, marine systems, steel, and materials services in Germany, the United States, China, and internationally. The company's Automotive Technology segment develops and manufactures components and systems, as well as automation solutions for the automotive industry. Its Industrial Components segment manufactures and sells forged components and system solutions for the resource, construction, and mobility sectors; and slewing rings, antifriction bearings, and seamless rolled rings for the wind energy and construction machinery sectors. The company's Multi Tracks segment builds plants for the chemical, cement, and mining industries. Its Marine Systems segment provides systems in the submarine and surface vessel construction, as well as in the field of maritime electronics and security technology. The company's Materials Services segment distributes materials and offers technical services for the production and manufacturing sectors. Its Steel Europe segment provides flat carbon steel products, intelligent material solutions, and finished parts. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.
How the Company Makes Moneythyssenkrupp AG generates revenue through several key business segments. The Materials Services division is a significant contributor, providing a comprehensive range of materials and logistics services. The Industrial Components segment focuses on manufacturing components for various industries, including automotive, which is another crucial revenue stream. The Elevator Technology division designs, installs, and maintains elevators and escalators, contributing a substantial portion of the company's earnings. Additionally, thyssenkrupp engages in the engineering and construction of plants, especially in the chemicals and cement sectors, which further bolsters its revenue. Partnerships with major global players in various sectors, investments in digitalization, and a focus on sustainability initiatives also play a critical role in enhancing profitability.
thyssenkrupp AG Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but controlled picture: management confirmed full-year guidance and reported operational progress (higher group EBIT adjusted, strong Steel Europe earnings, Materials Services and Automotive improvements, record TKMS backlog, strategic portfolio milestones and ESG recognition). However, the quarter was marked by a significant top-line decline (-8%), a large Q1 net loss (EUR -334m) driven by substantial restructuring (EUR 401m booked at Steel Europe) and negative free cash flow of EUR -1.5bn due to typical seasonality and working-capital build. Decarbon Technologies showed a notable downturn (sales -19%, negative EBIT and cash flow), and material uncertainties remain around the Steel sale process and HKM cash outflows. On balance, the company emphasized execution discipline and expects cash-flow recovery later in the year but faces near-term financial headwinds and restructuring-related costs.Q1-2026 Updates
Positive Updates
Confirmed Full-Year Guidance
Group guidance confirmed for FY '25-'26: sales -2% to +1% vs prior year; EBIT adjusted EUR 500m–900m; free cash flow before M&A between EUR -600m and EUR -300m (includes expected restructuring cash outflows up to EUR 350m); net income guidance EUR -800m to EUR -400m.
Improved Group EBIT Adjusted
EBIT adjusted increased to EUR 211m in Q1, up EUR 20m year-over-year despite an 8% decline in sales, demonstrating operational resilience.
Steel Europe Earnings Upswing
Steel Europe EBIT adjusted rose to EUR 216m (largest segment increase) despite sales declining 10% and shipments falling 4%; improvement driven by lower raw material prices, efficiency measures and some higher automotive volumes.
Record Order Backlog at Marine Systems (TKMS)
Marine Systems reported strong defense demand with a record order backlog of EUR 18.7bn; segment development and updated sales guidance are proceeding in line with outlook following TKMS spin-off.
Material Services Profitability Improvement
Materials Services delivered higher earnings with EBIT adjusted at EUR 50m, despite sales down 6% year-over-year; North American distribution/processing and APEX cost reductions more than offset weaker European direct-to-customer shipments.
Automotive Technology Operational Progress
Automotive Technology sales down ~3% YoY (currency-adjusted roughly flat) while EBIT adjusted improved to EUR 20m, up EUR 8m YoY, reflecting volume compensations, restructuring savings and efficiency initiatives.
Strategic Portfolio Milestones
Key strategic actions achieved: successful spin-off of TKMS (Oct), collective restructuring agreement with IG Metall (Dec), initiated sale of Automation Engineering (Nov) and term sheet on new HKM shareholder structure (Salzgitter sole shareholder from 1 June 2026). These moves advance the transformation to a lean financial holding.
ESG and Green-Technology Progress
thyssenkrupp secured CDP Climate A List recognition for the 10th consecutive year; announced framework agreement (Uniper & Uhde) on ammonia cracking tech (up to 6 plants, 7,200 t/day) and continued construction of DRI plant at Steel Europe, supporting green transformation momentum.
Negative Updates
Sales Decline and Top-Line Pressure
Group sales fell to EUR 7.2bn in Q1, an 8% year-over-year decline; multiple segments faced weak demand, particularly in Europe, with Decarbon Technologies down 19%, Materials Services down 6% and Steel Europe down 10%.
Significant Net Loss
Net income was negative at EUR -334m in Q1, driven largely by substantial restructuring and impairment items (including EUR 401m restructuring expense at Steel Europe booked in Q1).
Large Restructuring and Impairment Charges
Total restructuring expected EUR 700m–800m (vast majority Steel-related), with EUR 401m recognized in Q1 and additional restructuring cash outflows of up to EUR 350m included in free cash flow guidance; impairments at Automotive Technology related to Automation Engineering sale were also recorded.
Weak Performance in Decarbon Technologies
Decarbon Technologies saw sales down 19% and EBIT adjusted of EUR -16m (down EUR 33m YoY) due to project deferrals, lower electrolyzer sales, chemical new-build weakness and project-related additional costs; business cash flow dropped to EUR -162m.
Negative Free Cash Flow and Seasonal Working Capital Build
Free cash flow before M&A was EUR -1.5bn in Q1 (seasonal pattern); multiple segments recorded negative business cash flows (Automotive approx. EUR -70m, Decarbon Technologies EUR -162m); net cash position declined to EUR 3.2bn with expectation of recovery later in the year.
Uncertainty Around Steel Sale and HKM Impact
Ongoing due diligence with Jindal for a majority sale of Steel Europe creates timing uncertainty; HKM term sheet implies a low- to mid-3-digit million euro cash outflow to be phased over ~3 years and the end of slab supply to thyssenkrupp Steel by 2028—introducing execution and supply implications.
Market and Policy Benefits Not Yet Realized
Potential upside from European political initiatives (CBAM, tariffs) has not yet translated into measurable effects this fiscal year; company expects limited positive impact within the current fiscal year and potential benefits primarily next fiscal year.
Working Capital and Cash Conversion Challenges at Materials Services
Materials Services experienced a seasonal net working capital buildup and lower shipments in Europe, leading to weaker business cash flow and ongoing focus on working-capital efficiency as part of capital-market-readiness efforts.
Company Guidance
Management confirmed its group guidance for FY 2025/26: sales expected to be -2% to +1% versus prior year; EBIT adjusted targeted at EUR 500–900 million; free cash flow before M&A guided to EUR -600 million to -300 million (this already includes up to EUR 350 million of expected restructuring cash outflows); net income guidance is EUR -800 million to -400 million; and investments are guided at EUR 1.4–1.6 billion with an orientation toward the lower end. Management noted Q1 seasonality and headwinds (Q1 sales EUR 7.2 billion, -8% YoY; EBIT adjusted EUR 211 million, +EUR 20 million YoY; net income -EUR 334 million; free cash flow before M&A -EUR 1.5 billion), expects the working-capital swing to reverse in H2, and reported a net cash position of EUR 3.2 billion.thyssenkrupp AG Financial Statement Overview
Summary
Earnings have improved into modest profitability and leverage is conservative, but revenue has been shrinking and cash conversion is weak, with TTM free cash flow meaningfully negative—making the turnaround less durable until cash generation improves.Income Statement
Profitability has improved markedly versus the prior two years: annual results moved from deep losses in 2023–2024 to a positive net margin (~1.4%) in 2025, and TTM (Trailing-Twelve-Months) net income is also positive. However, revenue has been shrinking for several years (TTM revenue growth around -2.2%; annual declines since 2023), and gross margin remains thin (~11% in 2025/TTM), leaving earnings sensitive to execution and pricing. TTM also shows EBIT turning negative, highlighting that the recovery is still uneven.52
Neutral
Balance Sheet
Leverage looks conservative: debt-to-equity is low (~0.09 in 2025/TTM) and has improved materially from 2021 levels (~0.52), giving the company balance-sheet flexibility. Equity is sizeable relative to the asset base, and return on equity has rebounded into positive territory (~5% in 2025/TTM) after being sharply negative in 2023–2024. The main drawback is that returns are still modest for the industry and remain dependent on sustaining the recent earnings turnaround.74
Positive
Cash Flow
Cash generation is the weak spot. TTM (Trailing-Twelve-Months) operating cash flow is positive but modest, while free cash flow is meaningfully negative (about -1.16B), implying heavy outflows from investment needs or working-capital swings. Annual free cash flow has been volatile (positive in 2023, negative in 2024, near breakeven in 2025), and TTM free cash flow relative to net income is low, suggesting reported profitability is not consistently converting into cash.38
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.13B | 32.84B | 35.04B | 37.53B | 41.14B | 34.02B |
| Gross Profit | 3.47B | 3.50B | 3.24B | 2.66B | 5.66B | 4.36B |
| EBITDA | 2.61B | 2.67B | 1.03B | 1.83B | 2.99B | 1.30B |
| Net Income | 214.67M | 465.00M | -1.51B | -2.07B | 1.14B | -19.00M |
Balance Sheet | ||||||
| Total Assets | 28.03B | 28.89B | 29.33B | 33.29B | 37.49B | 36.81B |
| Cash, Cash Equivalents and Short-Term Investments | 4.05B | 6.09B | 6.33B | 7.83B | 8.20B | 9.53B |
| Total Debt | 825.65M | 878.00M | 1.47B | 3.02B | 3.98B | 5.43B |
| Total Liabilities | 17.73B | 18.32B | 18.98B | 20.60B | 22.75B | 25.97B |
| Stockholders Equity | 9.16B | 9.77B | 9.58B | 11.84B | 14.20B | 10.40B |
Cash Flow | ||||||
| Free Cash Flow | -1.16B | 30.00M | -243.00M | 307.00M | -679.00M | -1.36B |
| Operating Cash Flow | 342.50M | 1.68B | 1.35B | 2.06B | 617.00M | 92.00M |
| Investing Cash Flow | -886.22M | -939.50M | -1.13B | -1.58B | -277.00M | -510.00M |
| Financing Cash Flow | -970.72M | -1.03B | -1.64B | -716.00M | -1.79B | -1.28B |
thyssenkrupp AG Technical Analysis
Positive
10.58
Price Trends
12.05
Positive
11.08
Positive
9.43
Positive
Market Momentum
0.26
Positive
54.01
Neutral
26.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKAMY, the sentiment is Positive. The current price of 10.58 is below the 20-day moving average (MA) of 13.30, below the 50-day MA of 12.05, and above the 200-day MA of 9.43, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 26.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKAMY.
thyssenkrupp AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.99B | 17.05 | 25.58% | 0.85% | 15.71% | 29.60% | |
78 Outperform | $18.54B | 43.24 | 23.48% | 0.24% | 2.40% | 81.54% | |
71 Outperform | $8.07B | 33.56 | 13.86% | 0.33% | 1.19% | -7.78% | |
70 Outperform | $2.81B | 26.76 | 11.31% | 1.27% | 7.43% | 148.83% | |
69 Neutral | $20.19B | 53.58 | 22.12% | ― | 7.75% | 6.84% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | $8.14B | 44.48 | 1.77% | 52.22% | -4.44% | ― |
* Industrials Sector Average
TKAMY
thyssenkrupp AG
13.34
8.75
190.51%
ATI
ATI
158.87
101.72
177.99%
CRS
Carpenter Technology
389.73
190.24
95.36%
MLI
Mueller Industries
120.08
41.38
52.58%
WOR
Worthington Industries
57.16
15.06
35.77%
ESAB
ESAB Corporation
128.63
7.45
6.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.