German industrial conglomerate ThyssenKrupp AG reported third-quarter sales that exceeded market expectations on Tuesday, though its earnings-per-share forecast for fiscal 2026 was revised lower.
The company posted revenue of €9.8 billion for the three months ended March 31, up 4% from the same period a year earlier and surpassing analyst estimates of €9.5 billion. The increase was driven by stronger demand in its materials services and industrial components divisions.
Despite the revenue beat, ThyssenKrupp lowered its earnings-per-share target for the full fiscal year ending September 2026 to a range of €1.20 to €1.50, down from a prior guidance of €1.80 to €2.20. Management attributed the downward revision to ongoing supply chain disruptions and elevated energy costs, which have pressured margins in its core steel and automotive segments.
Chief Executive Officer Oliver Burkhard noted that while operational improvements were underway, the external environment remained challenging. "We remain focused on executing our transformation plan, but macroeconomic headwinds are weighing on near-term profitability," Burkhard said in a statement.
Analysts had expected ThyssenKrupp to maintain its 2026 EPS guidance, with consensus estimates compiled by Refinitiv pointing to €1.95 per share. The company’s shares were down 3.2% in Frankfurt trading following the announcement, extending losses from earlier in the session.
ThyssenKrupp, which has been restructuring its business to focus on high-margin industrial services, also reaffirmed its full-year revenue outlook of €38 billion to €40 billion. The group has been divesting non-core assets, including a planned sale of its elevator division, to streamline operations and reduce debt.
The earnings update comes as Europe’s industrial sector grapples with weak demand in key end-markets, including automotive and construction. ThyssenKrupp’s performance reflects broader challenges faced by German manufacturers, where energy-intensive production and high labor costs are eroding competitiveness.
