Targets

Targets and strategy

Together with our customers, we want to use our extensive and long-standing expertise in innovating technologies to develop cost-effective, resource- and environment-friendly solutions to the challenges of the future. By bringing together our innovative products, technologies and services under the roof of a strong umbrella brand, we want to make a contribution to a better, more livable and more sustainable future. We focus on forward-looking solutions and aim to assume responsibility by achieving progress coupled with effectiveness.

Financial targets

In an environment that remains geopolitically and economically challenging, we are seeking a tangible increase in the operational performance of all our businesses, thereby establishing the basis for thyssenkrupp to generate sustained positive value and cash flow contributions. Our goal is for our businesses to achieve the financial targets that have been defined for the medium term.

On the basis of the current portfolio structure, we are adhering to the medium-term targets for the group as communicated in the last Capital Market Update 2022 and the Annual Report 2022 / 2023: an adjusted EBIT margin of 4% to 6% and a significantly positive free cash flow before M&A. The reliable payment of a dividend remains a primary target.

■  Automotive Technology – Adjusted EBIT margin of 7% to 8%

■  Decarbon Technologies – Adjusted EBIT margin of more than 5%

■  Materials Services – Adjusted EBIT margin of 2% to 3%

■  Steel Europe – Target for adjusted EBIT margin subject to the business plan being prepared

■  Marine Systems – Adjusted EBIT margin of >7%

Further information about segment performance and target achievement can be found in the subsection headed “Segment review” in the “Report on the economic position.” Details of the performance indicators can be found in the “Corporate management” subsection. The forecast for the current year is presented in the “Forecast report.”

Group strategy

thyssenkrupp is driving forward with its strategic realignment. In May 2025, we communicated a model for the future alignment of the group. At the core of this target concept is the stepwise transition of all thyssenkrupp’s businesses to stand-alone solutions that are open to third-party investment. thyssenkrupp AG is to be transformed into a financial holding company that serves as the umbrella for majority investments in strong and independent companies – with clear roles, independent management and their own contribution to value added.

The strategic alignment is focused on leveraging the opportunities harbored by key future-oriented areas with significant growth potential. Environmental issues play a central role here. On the path to climate neutrality, hydrogen technologies, green chemicals, renewable energy, e-mobility and supply chains are relevant focus areas. In implementing our strategy, we remain committed to three main areas of action: portfolio, performance and green transformation.

Portfolio

A clear decision has been taken on the direction of thyssenkrupp: We want every individual business to develop in the best possible way and to achieve a sustainable competitive position. We are convinced that establishing an independent organization for the segments – with the advantage of their own access to the capital markets and the option for third-party investment – will enable them to leverage their full value potential and use their independence to make investments, access market opportunities and achieve further growth. However, the starting position for a stand-alone solution differs from segment to segment, depending on the market environment, business model and progress in transformation. In preparing this step, the businesses are therefore setting different accents, moving at different speeds and considering different measures.

Automotive Technology is to evolve into a focused and high-growth automotive supplier in a stand-alone configuration. Since October 1, 2025, the segment has been realigning its activities into four customer- and technology-focused business units. This reorganization is intended to create simplified structures, increase innovative strength and enable synergies. In addition, the aim is to establish the conditions for actively contributing to the transformation of the automotive industry. The goal is to create a profitable and clearly positioned segment that benefits particularly from the structural growth of the e-mobility sector and the Asian markets. At the same time, Automotive Technology is adjusting its portfolio. The Automotive Body Solutions, Automation Engineering and Springs & Stabilizers business units are now being managed separately and we are exploring strategic options such as partnerships or new ownership models. In this context, with the signing of the corresponding agreements, we initiated the sale of the Automation Engineering core business to Agile Robots on November 21, 2025.

Decarbon Technologies is aligning its business model with growth in the field of climate-relevant technologies. The goal is to further increase its innovative strength and facilitate access to specialized, industry-specific investors, focusing on market-relevant future fields such as hydrogen, Carbon2Chem and industrial decarbonization. The business is continuing to develop dynamically to leverage these market opportunities, specifically expanding the expertise, partnerships and technological platforms necessary to achieve this.

With its vision of “Materials as a Service,” Materials Services is evolving into a data-driven provider of materials and logistics services focused on expanding digital platforms, sustainable logistics solutions and high-growth business areas. The lean business unit structure introduced in July 2024 is intended to strengthen efficiency and customer focus, creating the basis for forward-looking strategic development.

Steel Europe continues to implement the industrial future concept, thus responding to structural changes in the markets. This is aimed in particular at optimizing the production network in combination with a reduction in production capacities to increase the segment’s competitiveness and profitability. In parallel, we will continue to implement the existing Strategy 20–30 to improve the segment’s operating performance. At the start of April 2025, thyssenkrupp Steel Europe AG terminated the supply agreement with HKM, ending its obligation to purchase around 2.5 million tons of steel each year as of December 31, 2032. In July 2025, we reached consensus with the IG Metall trade union on the new “Steel Realignment” collective restructuring agreement, thus fulfilling a key condition for the long-term competitiveness and successful positioning of thyssenkrupp Steel. Moreover, in mid-September 2025, a non-binding indicative offer was received from Jindal Steel International for the acquisition of thyssenkrupp Steel Europe. This is being reviewed by thyssenkrupp AG with regard to economic viability and the continuation of the green transformation. In this connection, EP Group (EPG) and thyssenkrupp AG mutually agreed to end their negotiations on a possible 50 / 50 joint venture for thyssenkrupp Steel Europe. As of September 30, 2025, EPG returned the 20% interest it had acquired in thyssenkrupp Steel Europe AG on July 31, 2024 and received reimbursement of the purchase price.

Since October 20, 2025, TKMS (Marine Systems segment) has operated as an independent, publicly listed systems supplier in the maritime defense market. This move has not only strengthened the financial independence of TKMS but provides the company with new opportunities for growth and innovation. At the same time, thyssenkrupp AG remains the strategic majority shareholder with an interest of 51%, thus ensuring stability. The transaction marks an important step in the group’s transformation into a financial holding company.

Performance

The goal of the transformation process is to sustainably boost the performance and competitiveness of all our businesses, achieve a positive free cash flow before M&A and establish the basis for paying a reliable dividend. The condition for this is that the businesses achieve their financial targets rapidly and in the long term, even in challenging conditions (see the subsection headed “Financial targets”).

In September 2023, thyssenkrupp launched the groupwide APEX performance program. This consolidates the group’s existing and newly developed transformation and performance measures aimed at improving the profitability and market opportunities of all its businesses. In the first phase, measures were identified in respect of assets/CAPEX, business models and sales, material costs, net working capital and organization. They are currently being implemented.

The second phase of the program is focused on structural measures to improve efficiency, optimize business models and adapt to the markets. Our goal is to consistently implement the necessary restructuring measures. As this phase progresses, it is planned to decentralize management of the measures although the central APEX Transformation Office will continue to provide support. Responsibility for the implementation and success of the measures lies with the individual businesses.

Details about progress in implementing the measures can be found in the subsection headed “Segment review” in the “Report on the economic position.”

Green transformation

Our goal is to use our innovative products and state-of-the-art digital technologies to provide substantial support to our customers in the green transformation and achieving their sustainability targets. Thanks to its broad technology portfolio, the Decarbon Technologies segment is making a contribution to the sustainable transformation of energy-intensive industries. The segment identifies major decarbonization trends such as those in the areas of hydrogen (majority investment in thyssenkrupp nucera), green chemicals (Uhde), cement (Polysius) and renewable energy (Rothe Erde). These areas are strategically well positioned to benefit in the medium and long term from the substantial growth potential associated with the green transformation. Examples of green technologies are described in the subsection headed “Technology and innovations.”

Alongside the products and solutions whose development we are driving forward for our customers, we are working on the decarbonization strategy of our own group. Through Steel Europe’s hydrogen-capable direct reduction plant, currently under construction, we are aiming to cut annual CO₂ emissions by as much as 3.5 million tons. This project is strengthening thyssenkrupp’s role as a major purchaser in the European hydrogen economy and making Duisburg an important hydrogen infrastructure site. At the same time, the group is pursuing economic routes with the long-term target of climate neutrality.

^{Source: Annual Report 2024/2025, p. 26-28}