thyssenKrupp AG has demonstrated resilience in fiscal year 2023/2024, navigating through challenging market conditions while maintaining its strategic transformation initiatives. The German industrial conglomerate reported sales of €35.0 billion, representing a 7% decrease from the previous year, as it faced headwinds in key customer sectors.
The company's adjusted EBIT reached €567 million, falling within the forecast range despite market pressures. This performance reflects the effectiveness of thyssenKrupp's APEX performance program, which has helped cushion the impact of adverse market conditions. The company achieved a positive free cash flow before mergers and acquisitions of €110 million, exceeding initial projections and demonstrating strong financial management.
Market challenges were particularly evident in the company's order intake, which declined to €32.8 billion from €37.1 billion in the previous year. The automotive, engineering, and construction sectors showed notably reduced demand. However, the Marine Systems division provided a bright spot, securing significant submarine contract extensions and increased orders in marine electronics, partially offsetting weaknesses in other segments.
The company's Materials Services and Steel Europe divisions experienced considerable pressure from weakened demand and lower pricing, while the Automotive Technology segment faced downturns in construction machinery and assembly lines. In contrast, the Decarbon Technologies division showed promising growth, driven by water electrolysis projects and ongoing major initiatives in the Uhde business unit.
thyssenKrupp's transformation efforts have been accompanied by significant restructuring costs, resulting in a net loss of €1.4 billion for the fiscal year. This figure includes approximately €1.2 billion in asset impairments, with Steel Europe accounting for the majority at around €1 billion. The impairments reflect both structural changes in the steel industry and investments required for green transformation initiatives.
Despite these challenges, the company maintained a strong financial position with equity of €10.4 billion and a healthy equity ratio of 35%. Net financial assets increased slightly to €4.4 billion, supported by positive free cash flow. The company's liquidity position remained robust, with combined cash and undrawn credit lines totaling €7.1 billion at the fiscal year's end.
Looking ahead, thyssenKrupp has expanded its APEX performance program to address structural issues and create financial flexibility for ongoing transformation efforts. The company has proposed a dividend of €0.15 per share, maintaining its commitment to shareholder returns while balancing the need for strategic investments and operational improvements.
