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TKMS Raises Guidance as Backlog Reaches €20 Billion

Stronger-than-expected quarter signals rising global defence demand that is pushing the company to forge partnerships and scale capacity.

Overview

  • TKMS reported stronger first nine-month results and on Wednesday raised its 2025/26 guidance to 10–12% revenue growth with an adjusted EBIT margin of up to 6.5%.
  • The firm sits on a record order backlog of about €20.1 billion at the end of June, including a signed €5 billion MEKO A-200 frigate deal with the German Navy and a preferred-bidder position for up to 12 Canadian submarines that is not yet contracted.
  • Revenue for the first nine months rose roughly 19% to about €1.9 billion and adjusted EBIT increased to €110 million, results that sent the stock up double digits on investor optimism.
  • Faced with full yards and stretched supply chains, TKMS is recruiting heavily, planning a Singapore maintenance hub and exploring international production partnerships such as using Spain’s Navantia to meet delivery timelines.
  • The business boost reflects a broader post‑2022 European and Gulf rearmament trend that is lifting demand for frigates, submarines and mine‑countermeasure systems and is likely to shape procurement and shipyard capacity for years.