1) Strategic Transformation and Leadership Focus
- thyssenkrupp continues to execute its ACES 2030 strategy, aiming to become a lean financial holding company.
- The successful spin-off of TKMS in October is highlighted as a major milestone, creating significant shareholder value.
- Ongoing negotiations with Jindal for a majority holding in Steel Europe are in progress, with due diligence currently underway.
- A collective restructuring agreement with IG Metall Union was reached in December, marking a historic milestone.
- Recent agreements on the shareholder structure of HKM indicate a shift in operational control, with Salzgitter set to operate HKM independently from June 2026.

2) Financial Performance Overview
- Q1 sales decreased to EUR 7.2 billion, an 8% decline YoY, while EBIT adjusted rose to EUR 211 million, up EUR 20 million YoY.
- Net income was reported at a loss of EUR 334 million, primarily due to restructuring expenses at Steel Europe.
- Free cash flow before M&A was negative at EUR 1.5 billion, with expectations for recovery in the second half of the fiscal year.
- The net cash position decreased to EUR 3.2 billion but remains solid, with expectations for improvement as cash flow stabilizes.

3) Segment Performance Insights
- Steel Europe: Sales fell by 10%, but EBIT adjusted increased to EUR 216 million due to lower raw material prices and efficiency gains.
- Automotive Technology: Sales declined by about 3% YoY, with EBIT adjusted at EUR 20 million, reflecting both growth in the serial business and declines in project business.
- Decarbon Technologies: Experienced a 19% sales decline due to project deferrals, resulting in an EBIT adjusted loss of EUR 16 million.
- Materials Services: Sales decreased by 6% YoY, yet EBIT adjusted increased to EUR 50 million, driven by strong performance in North America.
- Marine Systems (TKMS): Strong demand continues, with a record order backlog of EUR 18.7 billion.

4) Challenges and Market Outlook
- The macroeconomic environment remains challenging, with weak customer demand particularly in Europe.
- Political initiatives in Europe, such as CBAM and steel tariffs, are expected to provide upside potential, but measurable effects are not anticipated until the next fiscal year.
- The company confirmed its full-year guidance, expecting sales to range from a decline of 2% to an increase of 1%, with EBIT adjusted between EUR 500 million and EUR 900 million.
- Restructuring costs are projected to total EUR 700 million to EUR 800 million, primarily related to Steel Europe.

5) Guidance and Future Plans
- thyssenkrupp maintains its guidance for free cash flow before M&A at between minus EUR 600 million and minus EUR 300 million, including restructuring cash outflows.
- The company is cautious about investments, leaning towards the lower end of its EUR 1.4 billion to EUR 1.6 billion guidance.
- Future plans include enhancing the capital market readiness of Materials Services, potentially leading to an IPO or sale in the future.

Bottom line: Despite a challenging market environment, thyssenkrupp is executing its strategic transformation effectively, confirming its guidance while navigating restructuring and operational challenges. The focus on portfolio optimization and capital market readiness positions the company for potential future growth, making it a compelling prospect for shareholders.