Thyssenkrupp's Quiet Period Looms as Divestment Clock Ticks

Thyssenkrupp shares surge over 8% on energy cost relief, but analyst views diverge sharply ahead of earnings and major asset sales, including a potential €25B TK Elevator exit.

Thyssenkrupp shares closed Friday’s session at €9.26, capping a weekly gain of over eight percent. The rally, fueled by easing energy costs lifting sentiment across heavy industry, has pushed the stock past a key technical level. Yet this market optimism stands in stark contrast to a sharply divided analyst community, setting the stage for a volatile period ahead.

Two pivotal events are now converging on the calendar. Starting April 22, the company enters a quiet period, restricting management from public commentary on financial matters ahead of its earnings report. That crucial half-year figures will be released on May 12, a date investors are marking as a major inflection point. The report is expected to provide an update on stalled negotiations with Indian steelmaker Jindal Steel. A definitive failure of that deal would force fundamental questions about the future of Thyssenkrupp’s entire steel division back to the forefront.

Beyond immediate earnings, the company’s strategic overhaul is gaining momentum through potential high-value exits. The most significant involves TK Elevator. Majority owners Cinven and Advent are preparing a sale or stock market listing for the second half of 2026, with the elevator manufacturer potentially valued at up to €25 billion. Thyssenkrupp retains a 16 percent stake, and a full exit would unlock substantial funds for debt reduction and its green steel transition. Finnish rival Kone is reportedly a potential direct buyer.

In parallel, Thyssenkrupp is examining options for its Materials Services trading division. According to Reuters sources, a spin-off, IPO, or outright sale are all under consideration. The company is also reviewing a conversion to a KGaA structure, which would allow it to retain control following a partial sale. The division generated revenue of €11.4 billion in the 2024/25 fiscal year. A stock market debut for the unit could come as early as this autumn, contingent on an improvement in its operational performance this quarter.

The core steel business remains under intense pressure. From June, Thyssenkrupp will suspend production at its French site in Isbergues for four months, putting approximately 1,200 jobs at risk. Cheap imports continue to compress margins. However, a new EU trade regulation offers a glimmer of hope. Member states and the European Parliament have agreed on strict import caps, allowing only 18.3 million tonnes of steel to enter the EU duty-free—nearly half the previous volume. Any imports beyond that quota will face a 50 percent tariff.

This complex backdrop explains the stark divergence in analyst ratings. Barclays recently downgraded its view, advising clients to underweight the stock and cutting its price target to €9.00 after slightly reducing profit forecasts. In direct opposition, Jefferies maintains a buy recommendation with a €13.00 price target, citing a positive assessment of the company’s restructuring efforts.

Technically, the share’s recovery from a March low of €7.15 remains fragile. The stock currently trades just below its 200-day moving average of €9.89. A sustained break above the 50-day average at €9.34 would improve the chart picture, while a fall back below €9.00 could trigger a swift technical setback. With the quiet period imminent and major strategic decisions pending, the stock’s recent gains face a critical test of endurance.