In Frankfurt, Tkms’s shares are soaring thanks to its financial results and guidance

(Il Sole 24 Ore Radiocor) - Tkms soars on the Frankfurt Stock Exchange (DAX 30), buoyed by better-than-expected results for the first nine months of the 2025/26 financial year and thanks to the upward revision of its annual targets, for the second time in six months. Shares in the subsidiary of Thyssenkrupp , which specialises in the construction of warships and submarines, has thus posted a gain of around 48 per cent since the start of the year, driving the parent company’s share price higher and providing a positive boost to the entire European defence sector. In particular, the German companies Rheinmetall and Hensoldt as well as the Norwegian company Kongsberg. Gains were more modest for BAE Systems, Saab Ab, Leonardo and Thales.

TKMS increased its turnover by 19% in the first nine months of the financial year to €1.9 billion, whilst adjusted operating profit rose by 13% to €110 million, exceeding the consensus forecast of €101 million. Submarines were a key driver of the results. Turnover in this sector reached €1 billion and adjusted EBIT quadrupled to €46 million. Atlas Electronics also recorded strong growth, with sales up 28 per cent and adjusted EBIT up 31 per cent. The group’s order book remained very robust, totalling €20.1 billion at the end of June.

Anticipating greater demand for surface vessels, such as frigates, as well as sensors and mine-clearing technologies, TKMS now forecasts revenue growth of 10–12 per cent for the full financial year (ending in September), compared with previous estimates of 2–5 per cent. The revised forecast has exceeded analysts’ expectations, which stood at around 4 per cent. The operating margin is now projected at 6.5 per cent for the year, higher than the 6.4 per cent estimated by analysts and the previous forecast of a margin above 6 per cent. As analysts point out, TKMS, a Thyssenkrupp subsidiary in the shipbuilding sector which has been listed on the stock exchange since last October, is among the main beneficiaries of the rearmament drive in Europe, against the backdrop of US disengagement.

“Our recent successes confirm our position of excellence as a maritime power, both nationally and internationally,” said CEO Oliver Burkhard, referring to the orders secured in recent times. In particular, the company has secured contracts with the German Navy, which has ordered four frigates, and has signed an agreement to supply submarines to Canada. Norway has ordered a further two submarines. TKMS is also in the final stages of negotiations with India for the construction of six submarines. A key development has been the Canadian government’s designation of TKMS as the preferred bidder for the construction of up to twelve submarines, although the order is not yet final.

The size of the order book has also raised concerns in the market about potential shortages of production capacity. For this reason, the group is actively exploring opportunities for international cooperation for its future projects, CEO Burkhard reassured. This includes, for example, utilising the production capacity of the Spanish shipyard Navantia. Bernstein analysts predict that, following today’s announcements, the experts’ growth forecasts will be revised upwards. Furthermore, anticipating an acceleration in the marine electronics segment, Bernstein believes it is possible that the shipbuilder may revise its medium-term targets upwards in the coming quarter.