Thyssenkrupp’s Elbit Alliance and Holding Restructuring Lift Shares Above €10.70

Thyssenkrupp gains 21% in a month after naval partnership with Elbit Systems and restructuring plans; analysts see further upside to €12–€13.

Thyssenkrupp is rewriting its corporate narrative, and investors are rewarding the shift. The German industrial group has sealed a naval technology partnership with Israel’s Elbit Systems and is pushing ahead with a plan to slim down into a pure holding company. Both moves have injected fresh momentum into a stock that has already gained more than a fifth in value over the past month.

The shares closed Wednesday at €10.78, a monthly advance of roughly 21% that has lifted the year-to-date gain to nearly 26%. The rally has pushed the 14-day relative strength index to 82.3, deep into overbought territory. Yet analysts see further headroom: the consensus price target hovers around €12, while Jefferies has set a more ambitious target of €13.

The defence subsidiary Thyssenkrupp Marine Systems (TKMS) is the engine behind much of the optimism. Since its listing in October 2025, the market has been able to value the parent with far greater clarity. Thyssenkrupp retains a 51% controlling stake in the warship builder, which reported a record order backlog of €20.6 billion at the end of March. In the first half of its fiscal year, TKMS revenues climbed 10% to €1.17 billion, with adjusted operating profit reaching €60 million. For the full 2025/2026 year, management forecasts sales growth of 2–5% and an operating margin above 6%.

The new alliance with Elbit Systems adds a technological edge. Under a memorandum of understanding, the two companies will jointly develop and market advanced maritime defence solutions. TKMS contributes its shipbuilding expertise while Elbit supplies cutting-edge sensors and defence systems. Financial terms have not been disclosed, but Oliver Burkhard, TKMS’s chief executive, described the pact as an effective way to bundle capabilities. Market observers view the deal as a strong signal of the unit’s operational independence.

Support is also coming from the sell side. Citigroup recently highlighted TKMS as a fresh catalyst for the parent stock, noting that the majority stake in the defence business now anchors a significant part of Thyssenkrupp’s valuation. The broader corporate restructuring—management’s drive to turn Thyssenkrupp into a pure holding company with separately listed divisions—is gaining traction. Plans to spin off the materials services business will be put to a vote at an extraordinary general meeting scheduled for the summer. A positive outcome would accelerate the transformation.

Not every piece of the puzzle has fallen into place. Talks to sell the steel division to India’s Jindal Steel collapsed, forcing the group to focus on making the remaining segments more self-sufficient. Meanwhile, the latest quarterly results showed an improvement: earnings per share came in at exactly €0.00, compared with a loss of €0.25 a year earlier. Management is now roadshowing the story at UBS and Bernstein conferences, seeking to win over institutional investors.

The next major milestone will be the third-quarter interim report in August. For the current financial year, the market is banking on a stable dividend of €0.15 per share. With the defence order book at a record high and the holding structure edging closer to reality, Thyssenkrupp’s stock may have further to run despite its technically stretched readings.