Thyssenkrupp Steel Restructuring Deepens as Losses Hit First-Quarter Results

Thyssenkrupp

Thyssenkrupp steel restructuring has moved into a more expensive and more decisive phase. The German steelmaker reported a €334mn net loss in the first quarter of its 2025-26 financial year. Most of that damage came from €401mn in restructuring expenses tied to Steel Europe. As a result, Thyssenkrupp steel restructuring is now shaping both earnings and the company’s future direction.

The latest loss matters because it reflects more than weak market conditions. Thyssenkrupp linked the restructuring costs to its collective agreement with IG Metall reached in December 2025. That agreement followed a period of lower prices and weaker shipments. Therefore, Thyssenkrupp steel restructuring is now moving from planning into full financial impact.

Steel Europe’s operating backdrop remains difficult. Sales in the division fell 10pc year on year to €1.96bn in the October-December quarter. Shipments also slipped 4pc to 1.73mn t. Consequently, weak pricing and soft demand in key end-use sectors are still weighing on Thyssenkrupp Steel Europe.

Thyssenkrupp Steel Europe Faces Weak Demand but Stable Operating Priorities

Thyssenkrupp Steel Europe continues to face pressure from sluggish European steel demand. The company said softer conditions in its main customer industries hurt both pricing and revenue. That remains a central challenge for the business. As a result, Thyssenkrupp Steel Europe is still operating in a market that offers little margin relief.

There were, however, a few areas of stability. Deliveries to automotive customers and steel service centres improved during the quarter. Hot-rolled coil deliveries also rose to 562,000t from both the previous quarter and the same period a year earlier. Therefore, not every volume indicator moved lower inside Thyssenkrupp Steel Europe.

Lower raw material costs and efficiency measures helped offset part of the damage. But they were not enough to reverse the broader earnings pressure. That means cost control is helping, yet not solving the core problem. Meanwhile, European steel demand remains too weak to deliver a meaningful recovery on its own.

Duisburg Direct Reduction Plant and Potential Sale Show Two Paths at Once

The company is now pursuing two major strategic paths at the same time. Thyssenkrupp confirmed confidential negotiations with India’s Jindal Steel International over a possible sale of Thyssenkrupp Steel Europe. Due diligence is already under way. As a result, Thyssenkrupp steel restructuring is no longer only about cost cutting. It is also about ownership change.

At the same time, the group is continuing construction of its Duisburg direct reduction plant. That project is moving ahead despite regulatory uncertainty. The decision suggests Thyssenkrupp still sees green steel investment as part of its long-term industrial future. Therefore, the Duisburg direct reduction plant remains strategically important even as asset sales are considered.

The company also reiterated plans to sell its stake in HKM to Salzgitter from 1 June 2026. It also reminded the market that blast furnace no 9 at Duisburg was shut permanently last October. These moves show a business actively reshaping its production base. Consequently, Thyssenkrupp steel restructuring is now affecting assets, ownership, and technology all at once.

The Metalnomist Commentary

Thyssenkrupp’s quarter shows how hard it is to restructure steel in Europe while demand stays soft and decarbonisation costs keep rising. The most important signal is not the quarterly loss alone. It is that Thyssenkrupp is now redesigning its steel business through labour agreements, asset sales, and lower-carbon investment at the same time.