Overview
- TKMS, which reported results Monday, lifted revenue 10% to €1.17 billion and adjusted EBIT 14% to €60 million, while net profit fell 41% to €27 million due to higher spending on research, expansion and sales.
- Order intake reached €3.4 billion and pushed the order backlog to a record €20.6 billion, with submarines and sonar systems driving most of the growth.
- Chief executive Oliver Burkhard said he expects a decision in the first half on Canada’s planned submarine purchase and voiced confidence in TKMS’s bid, with South Korea’s Hanwha Ocean still in the running.
- TKMS said it can fulfill current work with its own yards but is evaluating extra capacity through a potential cooperation with Spain’s Navantia to produce submarine parts that are now bottlenecks.
- Investors sent the stock down more than 6% on Monday after the update, as the company prepares to add a chief operating officer on May 15 to tighten order execution and pursue margin targets above 6%.