Thyssenkrupp reports improved Q3 earnings amid TKMS defense boom

Thyssenkrupp reported mixed financial results for its third fiscal quarter. While sales rose 8% year-over-year to €8.8 billion and adjusted EBIT increased to €183 million, the company faced significant losses in its first nine months due to restructuring provisions, particularly within the Steel Europe segment. Net income for the third quarter turned positive at €34 million, a notable improvement from the previous year's loss of €255 million.

Thyssenkrupp's subsidiary, Thyssenkrupp Marine Systems (TKMS), is experiencing a significant defense boom. TKMS reported a record order backlog of approximately €20.1 billion, driven by geopolitical demand for submarines and surface vessels from nations including Norway, India, and various Gulf states. Consequently, TKMS has significantly raised its full-year revenue guidance to an increase of 10% to 12%, up from previous estimates of 2% to 5%.

Despite the success in the marine sector, the group faces challenges including subdued demand in other areas and capacity constraints in shipyards. TKMS leadership noted a high volume of applicants from the automotive industry seeking stability, even as the company works to scale its workforce to meet growing orders.