Thyssenkrupp Scraps Jindal Steel Talks, Braces for €800 Million Restructuring Loss

Thyssenkrupp ends Jindal Steel talks, plans costly standalone overhaul of steel division, forecasting up to €800M net loss in 2026.

Thyssenkrupp has pulled the plug on months of negotiations with India's Jindal Steel International over a sale of its struggling steel division, opting instead for a costly internal overhaul that will push the conglomerate deep into the red this year.

The decision, announced after both sides agreed to halt discussions that began in September 2025, sent the company's shares climbing roughly 12.5 percent over the past seven days to €10.05 — a sharp recovery from the 52-week low of €7.15 hit in late March. Investors appeared to welcome the clarity, even as the price tag for going it alone became clear.

Management now expects a net loss of up to €800 million for fiscal 2026, driven by hefty restructuring provisions. Steel Europe alone booked around €400 million in charges during the first quarter, largely earmarked for job cuts. Despite the red ink, Thyssenkrupp is sticking to its adjusted operating profit target of between €500 million and €900 million for the year. Free cash flow, however, is expected to remain negative, with analysts forecasting an outflow in the mid-triple-digit million range.

The about-face was made possible by two key developments. First, Thyssenkrupp secured a restructuring collective agreement with the IG Metall union, giving it a clearer path to shrink costs. Second, the shareholders of Hüttenwerke Krupp Mannesmann agreed to a new configuration for the Duisburg-South site, significantly improving the steel unit's starting position. On top of that, Brussels has tightened import quotas, doubled protective tariffs on overshoots, and introduced the CBAM carbon border adjustment mechanism — moves that shield European steelmakers from dumping and global overcapacity.

CEO Miguel López argued the conditions for a profitable standalone steel business are now better than they have been in years. The plan is to restructure the division independently and eventually spin off Thyssenkrupp Steel Europe, with the parent potentially retaining a minority stake. That fits into the broader "ACES 2030" strategy, which aims to transform the group into a financial holding company.

For now, the defense business is providing a crucial buffer. Thyssenkrupp still holds a slim majority in the recently carved-out Thyssenkrupp Marine Systems, which landed a major order from Brazil. Alongside handing over a first frigate, both sides signed a letter of intent for four additional vessels, with the deal valued at an estimated $2 billion.

Another piece of the restructuring puzzle falls into place on June 1, 2026, when Thyssenkrupp plans to sell its stake in Hüttenwerke Krupp Mannesmann. The market will get its next big update on May 12, when the company publishes its half-year report for fiscal 2025/2026. Investors will be watching closely for a detailed timeline of the steel division's turnaround measures from López.