Friday’s trading session dealt a significant blow to Thyssenkrupp AG, with its equity plunging to a fresh 52-week low of €7.46. The stock closed the day down more than 6%, extending a dramatic decline that has seen it shed nearly 44% of its value since peaking at €13.24 in October.
Sector-Wide Selloff Intensifies
The downturn was part of a broader market movement impacting basic resources and steel companies. Peers such as Salzgitter and Aurubis also registered substantial losses as investors exited positions across the sector. Market sentiment is being driven by concerns that falling steel prices, weaker demand, and persistent cost pressures will continue to squeeze margins for industry players.
Recent financial results from Thyssenkrupp underscore the challenging environment. The company’s latest quarterly report showed a net loss per share widening to €0.57, a sharp deterioration from the €0.08 loss recorded in the same period a year earlier. Concurrently, revenue fell by over 8% to €7.19 billion. Looking ahead, analyst consensus for the full 2026 fiscal year projects a meager profit of just €0.025 per share.
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Potential Stabilizing Factors Emerge
Amid the gloom, two recent developments offer potential support. The group’s defense subsidiary, Thyssenkrupp Marine Systems (TKMS), has announced plans to establish a new maintenance and service center in Singapore. This strategic move aims to expand its less cyclical defense business within the Asia-Pacific region.
In a separate note, investment bank Morgan Stanley revised its rating on Thyssenkrupp stock last week, moving it from “Underweight” to “Equalweight.” The firm’s analysts set a price target of €8.30, suggesting the current valuation appears increasingly fair, provided the broader economic conditions show signs of stabilization.
All eyes are now on the upcoming quarterly report for the second quarter of fiscal 2026, scheduled for release on May 12. In the interim, the share price is likely to be influenced primarily by trends in global steel pricing and the progress of negotiations concerning the future of the company’s steel division.
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