Calvion Takes Centre Stage as Thyssenkrupp Nears Exit from HKM Joint Venture

Thyssenkrupp spins off green tech unit Calvion, nears HKM stake sale to Salzgitter, while steel division cuts 11,000 jobs. Q2 profit beats estimates despite revenue dip, stock rallies.

Thyssenkrupp is accelerating its break-up on two fronts, spinning out a new green technology unit even as it finalises the sale of its stake in a steel joint venture. The moves underscore the Essener group’s push to shed complexity and sharpen its focus as a diversified industrial holding.

From 1 May 2026, the sustainable process technologies formerly housed under Polysius will operate as a standalone entity called thyssenkrupp Calvion GmbH. Based in Ennigerloh, the unit will start with around 40 employees under the leadership of Lukas Schoeneck, who previously headed the Green Solutions business at Polysius. Calvion’s mission is to serve energy-intensive industries with Oxyfuel applications for cement, direct air capture, green lime and phosphogypsum recycling. The carve-out allows Polysius to concentrate on single machines, modernisation, spare parts and field services.

The spin-off is just one element of a broader portfolio shuffle. Talks are in their final phase with Salzgitter over the sale of Thyssenkrupp’s stake in Hüttenwerke Krupp Mannesmann (HKM), with a full takeover by Salzgitter expected by June 2026. Existing supply contracts with HKM are planned to run out at the end of 2028. Analysts see the exit as a strategic relief, reducing exposure to the volatile steel cycle.

Disposing of HKM does not solve the steel division’s deeper problems, however. The planned sale of a stake in Thyssenkrupp Steel Europe to Jindal Steel International has been halted for now, leaving management to handle the restructuring alone. The unit will cut or outsource up to 11,000 of its roughly 26,000 positions in the coming years, a burden that weighs both socially and financially.

The operating picture is mixed. In the second fiscal quarter, revenue slipped 2% to around €8.4bn, but adjusted operating profit came in at €198m, comfortably ahead of consensus expectations of €132m. The group has also trimmed its full?year sales outlook to a range of minus 3% to zero growth, with finance chief Axel Hamann citing geopolitical uncertainty.

The market has taken a more optimistic view. The stock closed at €10.55 on Friday, up 3.94% over the past week and 13.94% over the past month. At 47.54% above the 52?week low of €7.15, the rally has pushed the relative strength index to 73.0, signalling an overheated short?term move. Yet the broader trajectory remains positive: the share has gained 27% over the past twelve months.

Analysts see further room to run. The average price target stands at €12.60, implying an upside of roughly 19% from current levels. A successful completion of the HKM transaction in the summer could reinforce this re?rating.

External headwinds persist. Salzgitter’s finance chief Birgit Potrafki recently noted that no market turnaround is in sight, with promised infrastructure packages failing to fill order books and the EU’s carbon border adjustment mechanism still showing gaps. The automobile industry association expects massive job cuts among suppliers by 2035, a drag on demand for standard flat steel.

For Thyssenkrupp, the restructuring timetable is now set. Calvion must prove its technology can generate sustainable revenue, while the steel business has to forge ahead with cost cuts without the Jindal deal. After the strong quarterly profit, the operational bar is higher. The share price has already priced in some of the transformation; the next leg will require delivery on both fronts.