- Significant increases in Group sales (+19%) and adjusted EBIT (+13%).
- Revised guidance for fiscal year 2025/26: Sales growth of 10% to 12% year-on-year expected, with the adjusted EBIT margin rising to up to 6.5%.
- Medium-term targets fully confirmed, including an adjusted EBIT margin of >7%. New major orders underscore the outlook for further growth.
Kiel, August 12, 2026 – In the first nine months of fiscal year 2025/26, TKMS AG & Co. KGaA (TKMS) achieved a significant increase in both sales and adjusted EBIT due to good project progress and improved operating performance.
Thanks to the consistent execution of the historically high order backlog, which currently stands at €20.1 billion, sales for the first nine months amounted to €1,890 million, up 19% from the prior-year level (9M 2024/25: €1,587 million). Adjusted EBIT also rose significantly by 13% during the same period—driven, among other factors, by a fourfold increase in adjusted EBIT from the Submarines segment—reaching €110 million (9M 2024/25: €98 million).
The adjusted EBIT margin of 5.8% (9M 2024/25: 6.1%) reflects the planned and consistent ramp-up of new construction projects, including the delivery of three submarines from legacy projects, as well as higher administrative costs associated with the spin-off.
Oliver Burkhard, CEO of TKMS: “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. We deliver on our promises, and this is clearly reflected in our current business results. 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%. We are keeping a close eye on our performance and profitability: This is evident, among other things, in the ramp-up of our shipyard in Wismar and in our decision to withdraw our bid for German Naval Yards Kiel. In addition, we are specifically evaluating international cooperation opportunities for future projects, such as the potential use of production capacities at the Spanish shipyard Navantia.”
TKMS has further raised its guidance for the full year 2025/26—which was most recently increased in Q1—and now expects sales growth of +10% to +12% year-over-year (previously +2% to +5%) as well as an increase in the adjusted EBIT margin to up to 6.5% (previously over 6%). In the medium term, TKMS continues
to expect an adjusted EBIT margin of over 7%.
The latest successes in Germany and Canada underscore the TKMS Group’s growth prospects. After the end of the quarter, the contract was signed for the procurement of four MEKO® A-200 DEU-class frigates, with an option for four more, to strengthen the German Navy’s anti-submarine warfare capabilities. The contract will be recognized as order intake in the fourth quarter. This is the largest surface vessel order in TKMS’s history.
After TKMS was selected as the preferred supplier for up to twelve submarines as part of the Canadian submarine program, TKMS is working closely with the governments of Canada, Germany, and Norway, as well as with its industry partners, to swiftly advance and conclude contract negotiations. Upon final contract signing, the program would represent the largest single order in TKMS’s history.
During the reporting period, TKMS continued to record very high order intake totaling €3.6 billion, corresponding to a notable book-to-bill ratio of approximately 2x. The main contributors to this were the contract awarded by the Norwegian government for the construction of two additional 212CD-class submarines, as well as the framework agreement with the German customer for heavyweight torpedoes for the 212CD program. The TKMS Group’s order backlog remained at a historically high level of €20.1 billion as of the end of June.
Paul Glaser, CFO of TKMS: “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. In light of these encouraging developments, we have decided to adjust our full-year guidance for sales, adjusted EBIT, and adjusted EBIT margin for fiscal year 2025/26. We fully reaffirm our medium-term targets, including the further increase in the margin to over 7%.”
TKMS has further significant orders in the pipeline: TKMS is conducting final contract negotiations with India for the construction of six submarines, with an option for three more. In April, TKMS signed a memorandum of understanding with the Brazilian Ministry of Defense and local partners for the construction of four additional Tamandaré-class frigates. In addition, a joint venture in which TKMS holds a majority stake is the sole bidder in the selection process for the future German air defense frigate F127.
TKMS has signed another memorandum of understanding with the Spanish company Navantia, S.A. Both companies intend to establish a joint framework for cooperation on selected submarine projects by the end of the year. By combining their respective strengths, both companies aim to expand the industrial capacities available to the market, shorten delivery times, and enhance performance.
First 9 Months of 2025/2026: Key TKMS figures in detail
Order intake remained at a high level in the first nine months of 2025/26 at €3,617 million (9M 2024/25: €8,598 million). The ratio of order intake to sales (book-to-bill ratio) was approximately 2x. The high order intake in the first nine months was driven in particular by the Norwegian government’s order for the construction of two additional 212CD-class submarines, bringing the total for the Norwegian Navy from four to six. In addition, in the Atlas Electronics segment, a framework agreement was signed with the Federal Office for Equipment, Information Technology, and Utilization of the German Armed Forces (BAAINBw) for the delivery of heavyweight torpedoes and associated equipment for the 212CD-class submarines.
Order intake in the comparable period of the previous year was exceptionally high due to the contract expansion for the German-Norwegian 212CD submarine program and the award of the contract for the new Polarstern.
The order backlog remained at a historically high level at approximately €20.1 billion (September 30, 2025: €18.2 billion).
TKMS sales totaled €1,890 million, up 19% from the same period a year earlier (9M 2024/25: €1,587 million). This increase in sales resulted primarily from the scheduled execution of the high order backlog.
Adjusted EBIT rose significantly to €110 million (9M 2024/25: €98 million), driven in part by a fourfold increase in adjusted EBIT from the Submarines segment. This encouraging development reflects, in particular, the planned ramp-up of higher-margin new-build projects, alongside the delivery of legacy projects.
The TKMS Group’s adjusted EBIT margin stood at 5.8% (9M 2024/25: 6.1%). Compared to the prior year, this was impacted by higher administrative expenses resulting from the spin-off as well as temporary one-time effects.
As expected, free cash flow declined to €-204 million due to planned cash outflows associated with project execution (9M 2024/25: €631 million). The high comparative figure was primarily driven by customer prepayments under the 212CD program at the end of 2024.
Performance in the TKMS Segments in the First Nine Months of 2025/26
Submarines
Sales in the Submarines segment amounted to €1,001 million (9M 2024/25:
€854 million). The main drivers of this positive performance were the completion of major new-build projects and revenue recognition from smaller service projects. Adjusted EBIT in the Submarines segment rose significantly by 300% to €46 million (9M 2024/25: €11 million). The main drivers of this extremely positive performance were the growing ramp-ups in new-build projects, while the burdens from legacy projects decreased.
Surface Vessels
In the Surface Vessels segment, sales increased significantly by 11% to €408 million (9M 2024/25: €368 million). Significant sales contributions resulted from the execution of existing contracts, particularly the Tamandaré order from the Brazilian customer and the new Polarstern commissioned by the Alfred Wegener Institute, Helmholtz Center for Polar and Marine Research. Adjusted EBIT in the Surface Vessels segment remained stable at €30 million (9M 2024/25: €30 million).
Atlas Electronics
At Atlas Electronics, sales rose significantly by 28% to €612 million (9M 2024/25: €480 million). Adjusted EBIT also increased significantly by 31% to €59 million (9M 2024/25: €45 million). The increase in both sales and adjusted EBIT is primarily attributable to a higher order backlog, which is quickly reflected in the financial results due to the comparatively short project durations in the Atlas Electronics segment.
Guidance
Based on current information, TKMS expects the adjusted EBIT margin to improve to up to 6.5% in fiscal year 2025/26 (previously: over 6%). In addition, sales are now expected to increase by 10% to 12% compared with fiscal year 2024/25 (previously: 2% to 5%; last adjusted in February 2026). TKMS expects sales to rise sharply in the Atlas Electronics and Surface Vessels segments in fiscal year 2025/26, as well as to increase moderately in the Submarines segment.
In the medium term, TKMS continues to aim for sustained sales growth at an average annual growth rate of approximately 10%. At the same time, the adjusted EBIT margin is expected to exceed 7% in the medium term.
