Steel, hydrogen, SMRs, renewable energy: How to cover all the megatrends with thyssenkrupp, First Hydrogen and RWE

thyssenkrupp – Between steel crisis and naval hope

The current situation at thyssenkrupp is a mix of familiar challenges and new strategic opportunities. The recent quarterly figures paint a mixed picture. Revenue declined due to pricing pressure, but the adjusted operating profit (EBIT) improved slightly. The decisive factor is the massive 21% increase in order intake, driven by the Marine Systems business. This underscores the fact that the weakness in traditional areas such as steel and automotive supply is being offset by other segments. The Company is in the midst of a transformation that requires patience.

Driven by CEO Miguel López, the Company is undergoing a radical realignment. The goal is to create a lean holding company that brings together independent units under one roof. The planned IPO of Marine Systems (TKMS) is a key step in this direction. TKMS is to be listed with its own shares, while thyssenkrupp retains a strategic majority of 51%. This is intended to give the naval shipbuilder greater agility and direct access to the capital market. This is a clear commitment to focus and value creation.

While the naval subsidiary is thriving, the steel division remains the biggest problem child. The collapse of joint venture talks with Daniel Kretinsky's EP Group was a setback. Attention is now focused on the Indian interested party, Jindal Steel. An agreement would be a decisive step toward managing the billions in liabilities and the pressure to transform the steel business. The recent statements by German Finance Minister Klingbeil, indicating that public tenders should, whenever possible, use German or European steel, are providing tailwinds for the stock. The share price is currently EUR 12.935.

First Hydrogen - Focuses on small reactors for green hydrogen

The future of First Hydrogen will be significantly shaped by small modular reactors (SMRs). With the establishment of its subsidiary First Nuclear Corp. in spring 2025, the Company has set a clear focus: combining SMR energy with electrolysis to produce green hydrogen. This strategy aims to create a reliable and emission-free energy source for off-grid or industrial sites where security of supply is absolutely critical. First Hydrogen's goal is to make hydrogen production less dependent on the public electricity infrastructure and to ensure competitive costs.

The technical implementation is based on close cooperation with the University of Alberta. Together with the Renewable Thermal Laboratory under Professor Muhammad Taha Manzoor, First Hydrogen is working on optimizing reactor designs, fuel materials, and cooling technologies. This focus is also a direct response to the exploding energy demand of AI data centers. SMRs offer decisive advantages here. They are compact, scalable, and considered particularly robust thanks to passive safety systems. For hydrogen production, this means a potentially stable and efficient foundation.

Hydrogen production is the first step in the "Hydrogen-as-a-Service" model that the Company is pursuing. The goal is to provide customers with both green hydrogen and the supporting infrastructure, including hydrogen filling stations and compatible light and heavy commercial vehicles, covering the entire value chain. Initial practical tests with fleet operators in the UK are providing valuable data. At the same time, decentralized production sites in North America and Europe are being expanded. Together, these activities paint a coherent picture: First Hydrogen is building an integrated ecosystem for clean energy and mobility. The share is currently trading at CAD 0.49.

RWE – Energy giant undergoing strategic change

For RWE, 2025 is the year to get down to business. The energy company is setting the course for the future this year and sharpening its portfolio. On the one hand, it is pushing ahead with expansion in the renewable energy sector. In the summer, several new wind and solar parks with a total capacity of 83 megawatts went online in France. On the other hand, RWE is also looking ahead and investing EUR 10 million in the fusion research company Focused Energy. With this early entry into disruptive technologies, the Company aims to secure a long-term competitive advantage.

RWE also has a solid financial foundation. In the first half of the year, the Company generated adjusted EBITDA of EUR 2.1 billion and net profit of EUR 800 million. The forecast for the year as a whole was confirmed. The active share buyback program, in which the Company made a significant purchase last week, buying back around 787,000 of its own shares, also sends a clear signal to shareholders. This financial strength allows RWE to invest in growth and, at the same time, allows shareholders to participate directly in its success.

RWE recently scored a strategic coup with a partnership with asset manager Apollo. The deal will give RWE around EUR 3.2 billion for its minority stake in transmission system operator Amprion, but it will retain operational control. This will enable the Group to co-finance the urgently needed grid expansion without tying up its own liquid funds. At the same time, RWE withdrew from the planned large-scale green hydrogen project in Namibia. This is a sign that the Company is divesting itself of initiatives that are not yet market-ready. For investors, this demonstrates that management is using capital in a disciplined manner. The share price is currently soaring and is available for EUR 39.29.

Industrial transformation offers massive opportunities for pioneers. thyssenkrupp must now quickly implement the urgently needed streamlining through the planned IPO of Marine Systems and a sustainable solution for its steel division. First Hydrogen with its strategy for small modular reactors (SMRs) bridges the hydrogen and nuclear industries, addressing the need for reliable, green energy. RWE through its disciplined expansion of renewable energies, early fusion investments, and smart financial deals such as the Apollo partnership, demonstrates how an energy giant can remain strategically agile.