Thyssenkrupp Eyes June Showdown on Materials Services as Goldman Trims Stake

The countdown to one of the biggest corporate break-ups in German industrial history is accelerating. Thyssenkrupp’s supervisory board will reconvene on June 16 to decide the fate of its Materials Services division — a sprawling €11.4 billion turnover business with more than 15,000 employees spanning steel, plastics and logistics. The options on the table range from a spin-off and IPO to a full sale, with a potential KGaA structure that would let the parent retain control even after selling down its stake. An extraordinary general meeting could follow as early as late July or early August, with invitations possibly landing in investors’ inboxes this month.

The decision comes as a major US institutional investor quietly dials back its exposure. Goldman Sachs reported on Friday that its total stake in Thyssenkrupp had fallen from 5.35% to 4.79%, slipping below the mandatory 5% disclosure threshold on May 21. The bank now holds just 0.08% in direct voting rights, with the rest parked in derivatives such as options, swaps and warrants. This is a routine regulatory filing — not a reflection of any fundamental shift in the company’s fortunes — but it adds a layer of market repositioning ahead of a pivotal summer.

Materials Services would mark the third portfolio carve-out in three years, following the Nucera IPO in 2023 and the planned spin-off of Marine Systems in October 2025. This one, however, is the biggest. The supervisory board previewed the topic on May 20, and the June 16 meeting is widely expected to yield a concrete path forward. Thyssenkrupp’s broader restructuring into a financial holding is gathering pace, with the newly formed Thyssenkrupp Calvion GmbH — housing sustainable process technologies from Polysius, including oxyfuel and CO?-reducing solutions — having begun operations on May 1 with around 40 staff.

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Meanwhile, the steel division is getting a tailwind from Brussels. The European Parliament adopted new steel safeguard measures on May 19, set to take effect from July 1, 2026. Duty-free import quotas will be slashed to 18.3 million tonnes a year, a 47% reduction from 2024 levels. Anyone exceeding the quota will face a 50% tariff, double the current 25%. Thyssenkrupp has also pushed for separate protection for the electrical steel segment, which is not covered by the quota cuts, and the European Commission has opened an investigation.

Operationally, the half-year report delivered on May 12 painted a picture of sharp contrasts. Second-quarter order intake surged 32% year-on-year to €10.6 billion, propelled by giant contracts at Marine Systems, whose backlog now exceeds €20 billion. Revenue, however, slipped from €8.6 billion to €8.4 billion. The adjusted EBIT swung dramatically from €19 million to €198 million, helped by lower raw material and energy costs in the steel division as well as restructuring gains. Decarbon Technologies, by contrast, took a hit from project-related special charges at the Nucera hydrogen subsidiary. Thyssenkrupp maintained its full-year adjusted EBIT target of up to €900 million but trimmed its revenue outlook to a decline of between 3% and 0%. Free cash flow is expected to remain negative by up to €600 million.

The stock has responded to this evolving narrative with a powerful recovery. Closing the week at €11.72, the shares gained 1.21% on Friday and more than 8% over the week. That leaves them up roughly 39% from a year ago and a staggering 64% above the March 52-week low of €7.15. The current price still sits about 11.5% below last October’s high of €13.24. The relative strength index reads 62.2 — comfortably in neutral territory, suggesting the rally has further room to run without flashing overbought.

The steel division’s standalone path remains uncertain. Talks with Jindal Steel over a possible investment are on hold, and Thyssenkrupp is still committed to finding its own solution for Steel Europe. The sale of its stake in HKM to Salzgitter is expected to close by June 1. For now, the market’s focus is squarely on the June 16 board meeting — the next major catalyst in a restructuring play that has already rewarded patient shareholders handsomely.

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