Thyssenkrupp Restructuring Ramps Up with HKM Exit and Materials Services Demerger on Horizon

Thyssenkrupp finalizes HKM sale, plans Materials Services spin-off, cuts 11,000 jobs. Stock up 56% from low but overbought; next catalyst June 16.

Thyssenkrupp is accelerating its transformation on two fronts, finalising the sale of its stake in steel joint venture HKM to Salzgitter while preparing to spin off its lucrative Materials Services unit. The twin moves underscore the conglomerate’s push to slim down into a leaner holding structure, even as a weak market for steel and auto components continues to drag on revenue.

The HKM disposal, effective June 1, 2026, hands full control to Salzgitter and ends Thyssenkrupp’s direct exposure to the volatile steel market. Lieferverträge with HKM will run until 2028. Separately, the company is shuttering its automotive plant in Indiana by March 2027, shifting production to Ohio in a bid to restore competitiveness in North America. The painful restructuring also includes cutting or offloading up to 11,000 of the 26,000 jobs in the steel division after talks with India’s Jindal Steel were paused.

Meanwhile, the next major milestone is the planned demerger of Materials Services, the group’s materials distribution arm that employs over 15,000 people and accounts for more than a third of total revenue. Thyssenkrupp’s supervisory board discussed the split on May 20 and will reconvene on June 16 to take a decision. According to Reuters, the company is weighing an extraordinary general meeting in late July or early August, with invitations possibly mailed out as early as June. One option under consideration is a Kommanditgesellschaft auf Aktien (KGaA) structure, which would allow the parent to retain control even if it sells down its stake.

Progress on the operational side is providing some relief. In the second quarter, adjusted EBIT surged from €19 million to €198 million, driven by cost discipline and strong performances from Marine Systems and Automotive. Order intake hit €10.6 billion, a 32% jump largely fuelled by naval contracts. Management maintained its full-year adjusted EBIT target of €500–900 million, but lowered revenue guidance to an organic decline of between 3% and zero, down from the previous range of minus 2% to plus 1%. A net loss of €400–800 million is still expected, weighed down by restructuring charges and geopolitical uncertainty.

The stock has responded positively to the restructuring narrative. Shares traded at €11.18 on Monday, up 3.1% on the day, and have gained roughly 56% from the 52-week low of €7.15 struck in March. Yet the relative strength index at 88.7 signals the equity is deeply overbought, raising caution over near-term upside. Since the start of the year, the shares have added 15.6%, leaving the October high of €13.24 within striking distance.

A decision on Materials Services on June 16 will be the next catalyst. If the extraordinary shareholder meeting is called, investors will get a concrete proposal to vote on — and further evidence that the long?promised overhaul is finally gaining traction. With the HKM sale scheduled for June 1, Thyssenkrupp is set to clear two major hurdles in quick succession.