German conglomerate Thyssenkrupp has today cut its 2026 sales outlook, citing lower demand at its steel and automotive division in a sign of muted economic activity across Europe.
"We remain slightly cautious in respect of our sales forecast, not least because of heightened geopolitical uncertainties and their impacts on the international markets," finance chief Axel Hamann said in a statement.
The company now expects sales to fall by up to 3% and to remain flat at best, having previously expected a range of -2% to +1%. Analysts in an LSEG poll expected sales to fall by 1%.
Thyssenkrupp, which is in the process of divesting all its divisions in an attempt to turn into a holding structure, said that demand for steel remained "persistently weak".
Talks to sell the group's steel business to India's Jindal Steel International broke down this month, highlighting the structural challenges facing heavy industry in Europe.
Thyssenkrupp's second-quarter operating profit fell by two thirds to €65m, missing the €231m forecast in an LSEG poll.
