German Thyssenkrupp reported a steep 90% drop in second-quarter adjusted earnings before interest and taxes (EBIT), falling to EUR19 million, well below the expected EUR146 million. The sharp decline was attributed to high economic uncertainty and increased global tariffs, particularly affecting its automotive and steel sectors.

Thyssenkrupp warned that tariffs could negatively affect global automotive production in 2025. While current US import tariffs have been passed on to clients in its automotive business, the company anticipates continued challenges.

CEO Miguel Lopez highlighted concerns over a potential surge of low-cost Asian steel entering Europe as a result of US tariffs. The steel division reported a EUR23 million loss, reversing a EUR68 million profit from the previous year.

The German conglomerate still maintained its full-year forecast, projecting adjusted EBIT between EUR600 million and EUR1 billion, and free cash flow before mergers and acquisitions ranging from EUR0 to EUR300 million.