Overview
- On Wednesday TKMS upgraded its full-year guidance to 10–12% revenue growth and raised its adjusted EBIT margin target to as much as 6.5% after stronger-than-expected quarterly results.
- The company reported first nine-month revenue up about 19% to roughly €1.9 billion and an adjusted EBIT of €110 million, with margins pressured slightly by higher administration costs.
- New order intake fell to €3.6 billion from €8.6 billion because prior-year large awards lumpy, but the order backlog climbed to a record around €20 billion, including a roughly €5 billion German frigate contract with an option for four more.
- TKMS is the preferred bidder for up to 12 Canadian submarines but that contract is not finalized, and investors sent the stock up by double digits on the results and guidance upgrade.
- To avoid overstretching capacity the company is accelerating hiring toward about 10,000 staff, recruiting from the automotive sector, and exploring foreign cooperation, selective acquisitions and tighter project planning to manage execution risk and meet rising demand.