The company said sales remained broadly stable at €545 million, compared with €550 million in the same period a year earlier, reflecting project progress across existing programmes. Adjusted EBIT was unchanged at €26 million, while the adjusted EBIT margin edged up to 4.8% from 4.7% in the prior-year quarter.
Free cash flow amounted to €33 million, remaining positive but below the €901 million recorded a year earlier, when results were significantly boosted by high customer advance payments linked to record order intake. TKMS noted that the previous year’s quarter had also benefited from positive exchange rate effects and the revaluation of provisions.
In the Submarines segment, sales declined to €231 million from €315 million a year earlier, mainly due to service revenues brought forward into the previous quarter and timing effects typical of large-scale project business. Adjusted EBIT in the segment stood at minus €4 million, compared with minus €1 million in the prior-year period, reflecting additional costs related to the operational ramp-up in Wismar, shifts in revenue recognition, and higher sales as well as research and development expenses.
By contrast, the Surface Vessels segment recorded higher sales of €174 million, up from €126 million, driven particularly by new construction activities. Adjusted EBIT in the segment totalled €12 million, slightly below €13 million a year earlier, mainly due to higher sales and administrative costs and the absence of positive exchange rate effects seen in the comparative period.
At Atlas Electronics, sales rose significantly to €185 million from €141 million, while adjusted EBIT increased to €22 million from €10 million, reflecting a stronger order situation and resulting growth. The Group said these developments underline its competitive position in both national and international markets.
TKMS has raised its sales forecast for the full 2025/26 financial year and now expects revenue growth of 2% to 5%, compared with its previous outlook of between minus 1% and plus 2%. It also anticipates an adjusted EBIT margin of over 6% for the year and confirmed its medium-term target of exceeding 7%, alongside average annual sales growth of around 10%.
“TKMS remains on course for success. Our order backlog has once again reached a new high. In view of current geopolitical developments, our customers continue to show a high demand for advanced maritime capabilities. As the only fully integrated maritime systems supplier in Europe, we are ideally positioned to meet the needs in all dimensions of our industry. This can be seen not only in the current campaigns in Canada and India, but also in the order expansion from Norway in the 212CD program, as well as in the recently concluded preliminary contract for the MEKO® A-200 frigates,” said Oliver Burkhard, Chief Executive Officer of TKMS.
The company highlighted ongoing international campaigns, noting that in August it was selected as one of two remaining applicants in Canada’s tender for up to twelve submarines, while in India it has entered final negotiations with its local partner for six submarines. In Germany, the TKMS-led joint venture with the MEKO® A-400 design remains the sole bidder in the selection process for the future F127 air defence frigate, for which the Bundestag approved initial funding at the end of 2024.
Modernisation work has begun at the Wismar shipyard to support construction of submarines and surface vessels, with more than 140 new employees starting in early January and up to 1,500 jobs expected at full capacity. “TKMS is growing: We continue to prioritize the positive development and execution of our business operations with a significant increase in profitability. We have raised our forecast for the current year and now expect sales growth of +2% to +5% compared to the previous year and an adjusted EBIT margin of over 6%. We also confirm our medium-term target of an adjusted EBIT margin of over 7% and annual sales growth of about 10%,” said Paul Glaser, Chief Financial Officer of TKMS.
