Thyssenkrupp's Steel Suitor Emerges as Shares Ride a Multi-Week Winning Streak
Published on 08/26/2026 at 02:45 | Redaktion boerse-global.de
The long-running saga over the future of Thyssenkrupp's struggling steel division has taken a decisive turn, with Indian industrialist Naveen Jindal submitting a non-binding offer to acquire a 60 percent stake in Thyssenkrupp Steel Europe. The conglomerate's shares have been climbing steadily in recent weeks, buoyed by a combination of improving fundamentals, a sharpened earnings outlook, and growing conviction that a viable solution for the steel unit is finally within reach.
Jindal Steel's chief has tabled an indicative bid that would give the Indian group operational control of the steel business, with due diligence expected to run through the end of the year. Any potential transaction would not close before January 2027 at the earliest, according to the company. For investors who have watched the steel division's fortunes fluctuate for years, the emergence of a financially credible suitor marks a meaningful step forward in the conglomerate's restructuring efforts.
A Rally Built on Solid Ground
The market's response to the Jindal approach has been measured but positive. Shares advanced 1.1 percent on Tuesday to EUR 13.74, edging closer to the stock's 52-week high. Over the past 30 days, the equity has gained 11 percent, reflecting a broader investor reassessment of the group's turnaround prospects that has been building for weeks.
The optimism is underpinned by a sturdy set of quarterly numbers. In the three months ended June 30, Thyssenkrupp grew revenue by 8 percent to EUR 8.8 billion, while adjusted EBIT climbed 18 percent to EUR 183 million. Perhaps most notably, the group returned to profitability at the net level, posting a profit of EUR 34 million against a loss of EUR 255 million in the same period a year earlier. That swing was helped in part by a one-off gain of EUR 131 million from the sale of its stake in Hüttenwerke Krupp Mannesmann to Salzgitter.
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The improved performance prompted management to narrow its full-year guidance, lifting the floor on adjusted EBIT for fiscal 2025/26 to between EUR 600 million and EUR 900 million, up from a previous range of EUR 500 million to EUR 900 million. Reuters reported that the upgrade was driven primarily by the steel, marine, and trading units, and the company also signaled a tighter outlook for revenue, net income, and free cash flow before M&A — a move that gives investors greater visibility into the remainder of the fiscal year.
Street Reaction: Upgrades and Cautious Optimism
The analyst community has responded with a mix of enthusiasm and restraint. DZ Bank upgraded the stock from "Hold" to "Buy" on Friday, lifting its fair value estimate sharply from EUR 11.00 to EUR 16.00. JPMorgan followed suit on August 14, raising its price target from EUR 12.80 to EUR 15.00 while maintaining a "Neutral" stance, citing the ongoing upheaval within the group.
Jefferies reaffirmed its "Buy" rating on the day of the earnings release with a EUR 13.00 target, and Deutsche Bank Research also held its "Buy" recommendation with a EUR 16.00 objective. The divergence in price targets underscores a broader debate among investors: some see substantial further upside, while others caution that the stock's 47 percent advance since the start of the year has already priced in a significant portion of the fundamental improvement.
Defense Ambitions Add Another Layer
Beyond steel, Thyssenkrupp's naval subsidiary is generating its own wave of positive headlines. Media reports suggest that a deal to supply six conventional submarines to the Indian Navy, valued at approximately USD 7.3 billion, is nearing final approval from India's security cabinet. Thyssenkrupp Marine Systems would partner with Mazagon Dock Shipbuilders on the project, adding to a record order backlog that the division has already reported. The unit has also been selected as the preferred bidder for Canada's submarine renewal program, further cementing its role as a stabilizing force within the broader group.
Meanwhile, the operational transformation of the steel business continues in parallel. In Duisburg, Thyssenkrupp Steel has signed off on a new continuous casting plant built jointly with Primetals Technologies, capable of producing 2.3 million tonnes annually. The company is also in advanced discussions with Brussels over adjusting the funding structure for its EUR 3 billion green steel project in Duisburg, a centerpiece of its push toward climate-friendly production and a key factor in the long-term earnings power that investors are now scrutinizing so closely.
What Lies Ahead
With the Jindal offer now on the table, the restructuring of the steel division has acquired a concrete, financially backed interlocutor for the first time. The due diligence process running through year-end is likely to remain the central driver of share price movement in the coming months, while the defense unit's bulging order book provides an additional layer of resilience. Whether the raised guidance holds through the remainder of the fiscal year — and whether the Duisburg green steel project secures a workable subsidy arrangement — will determine if the current rally has further room to run.
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