Canada’s selection has moved TKMS into contract negotiations with the governments of Canada, Germany and Norway and with industry partners. TKMS said it is working to advance those talks quickly, with a final contract for up to 12 submarines set to exceed any previous single order secured by the company.
“Our recent successes confirm our outstanding positioning as a maritime powerhouse—both nationally and internationally. They are a strong sign of confidence in our ability to perform and deliver,” said Oliver Burkhard, CEO of TKMS.
Group sales reached €1.89 billion in the first nine months of fiscal 2025/26, compared with €1.59 billion a year earlier. Adjusted EBIT increased 13% to €110 million, while the adjusted EBIT margin stood at 5.8% compared with 6.1% in the prior-year period.
The Submarines business generated €1.001 billion in sales, up from €854 million, while adjusted EBIT rose to €46 million from €11 million. TKMS attributed the improvement to the ramp-up of higher-margin new-build projects and declining burdens from legacy programmes.
“We were able to further improve our operational performance. In the Submarine segment in particular—which accounts for the largest share of our order book—adjusted EBIT increased by 300%,” Burkhard said.
TKMS now expects full-year sales growth of 10% to 12%, sharply above its previous forecast of 2% to 5%. The company also raised its adjusted EBIT margin guidance to as much as 6.5% from more than 6%, while reaffirming its medium-term target of above 7%.
The company recorded €3.6 billion of new orders during the nine-month period, equivalent to a book-to-bill ratio of about two times. The largest contributions included Norway’s order for two additional 212CD submarines and a German framework agreement covering heavyweight torpedoes and associated equipment for the 212CD programme.
Another major order followed after the reporting period, when Germany contracted TKMS for four MEKO A-200 DEU-class frigates with an option for four more. TKMS said the agreement is the largest surface-vessel order in its history and will be recognised in fourth-quarter order intake.
“The systematic and consistent execution of our order backlog remains a top priority for TKMS. The strong sales and profitability trends in the first nine months of the current fiscal year confirm that we are on the right track,” said Paul Glaser, CFO of TKMS.
TKMS is also conducting final contract negotiations with India for six submarines, with an option for three more, while pursuing additional frigate business in Brazil. The company has separately signed a memorandum of understanding with Navantia to explore cooperation on selected submarine projects and potentially expand available industrial capacity.
