Thyssenkrupp AG: Portfolio Purge or Mere Posturing?
The German industrial conglomerate has finally taken a decisive step to shed what it calls “legacy assets.” On 24 November, the company announced the sale of its Automation Engineering business unit to Munich‑based Agile Robots SE. Although the financial terms were not disclosed, the move signals a broader strategy to trim non‑core operations and re‑orient toward high‑growth, high‑margin sectors.
A Calculated Exit or a Symptom of Weakness?
Thyssenkrupp’s portfolio has been under scrutiny for months. Its steel division, once the backbone of the group, now faces a hostile takeover bid from Jindal Steel. IG Metall has demanded binding guarantees on worker interests before it will consent to the sale, illustrating the deep‑seated resistance to divestitures that threaten job security. The company’s own statement that it “makes serious moves” is, at best, an attempt to soothe investors while the underlying fundamentals remain shaky.
Nucera’s Struggle with Green Hydrogen
Even within the group’s clean‑tech arm, thyssenkrupp Nucera is grappling with a weak market for green hydrogen. The subsidiary reported a lower‑than‑expected revenue forecast of €500–600 million for the 2025/26 fiscal year, a stark contrast to Bloomberg’s projection of €729 million. The downgrade reflects persistent uncertainty over final investment decisions and a broader lack of demand for electrolyser technology. This shortfall casts doubt on the company’s ability to deliver the promised returns that justify its continued investment in hydrogen infrastructure.
Stock Performance: A Tale of Volatility
With a closing price of €8.63 on 24 November, the share sits well below its 52‑week low of €3.795, yet still far from its peak of €13.35 reached in early October. The negative price‑to‑earnings ratio of –4.27 underscores the lack of profitability and the market’s skepticism. Investors are left questioning whether the asset‑cleaning strategy will translate into sustainable earnings or simply delay the inevitable decline.
Governance and Shareholder Rights
The company’s recent EQS stimmrechtsmitteilung (shareholder voting notice) highlights ongoing transparency efforts, yet it also signals that management is aware of the need to maintain shareholder confidence amid restructuring. The disclosure of voting rights indicates an attempt to engage investors, but it does little to offset the tangible risks posed by the divestments and the weak outlook for key business units.
Conclusion: A Frantic Bid for Relevance
Thyssenkrupp AG’s latest moves—selling Automation Engineering, confronting a contested sale of its steel arm, and facing a disappointing revenue outlook for Nucera—paint a picture of a company in crisis rather than one that is strategically pivoting. The divestment strategy, while ostensibly aimed at streamlining the portfolio, may instead expose the conglomerate to greater volatility and erode shareholder value. Stakeholders must scrutinise whether these actions will deliver the promised turnaround or merely postpone the inevitable restructuring of a once‑dominant industrial titan.
