- At €20.6 billion, the order book reaches new record high.
- Year-on-year increases in sales (+10%) and adjusted EBIT (+14%).
- Significant earnings improvement and margin increase in the Submarines and Atlas Electronics segments.
- Annual and medium-term targets fully confirmed, including an adjusted EBIT margin of >6% in fiscal year 2025/26 and >7% as medium-term target.
Kiel, May 11, 2026 In the first half of fiscal year 2025/26, TKMS AG & Co. KGaA (TKMS) reported sustained positive order momentum as well as a significant increase in both sales and adjusted EBIT.
During the reporting period, TKMS achieved a notably high order intake of €3.4 billion through new orders, including the contract from Norway for two additional Type 212CD submarines and the largest torpedo order in the Group’s history for the 212CD program. The TKMS Group’s order backlog thus reached a new record level totaling €20.6 billion as of March 31.
Thanks to the scheduled execution of the high order backlog, sales in the first half of the year amounted to €1,168 million, 10% above the prior-year level (H1 2024/25: €1,060 million). Adjusted EBIT also rose significantly by 14% to €60 million (H1 2024/25: €53 million). At the same time, the adjusted EBIT margin improved to 5.1% (H1 2024/25: 5.0%).
As expected, free cash flow declined to €-72 million (H1: €756 million) due to planned cash outflows associated with project execution. The exceptionally high comparative figure was mainly due to customer prepayments related to the major order under the 212CD program at the end of 2024.
TKMS confirms the guidance for the full year 2025/26, which was raised in Q1, and continues to expect revenue growth of +2% to +5% year-on-year as well as an increase in the adjusted EBIT margin to over 6%. Over the medium term, TKMS continues to expect an adjusted EBIT margin of more than 7%.
Oliver Burkhard, CEO of TKMS, declared: “TKMS is on track and continues to grow. For the first time, our order backlog has exceeded the 20 billion mark; both revenue and adjusted EBIT have risen significantly year-on-year. TKMS is ideally positioned to meet the high demand for advanced maritime defense solutions in Germany and in our partner countries worldwide. We can cover the current order backlog as planned with our own shipyard locations. Looking ahead meanwhile, we are already exploring potential international partnerships.”
TKMS’s sales campaigns on both national and international competitive markets continue to progress promisingly:
In March, the Budget Committee of the German Bundestag approved the extension of the preliminary agreement for the MEKO® A-200 DEU project. This marked an important step in the Surface Vessels Segment toward the procurement of four TKMS frigates to strengthen the German Navy’s antisubmarine warfare capabilities. Furthermore, a joint venture led by TKMS is the sole bidder in the selection process for the future German air defense frigate F127.
In the Submarines Segment, TKMS has submitted a non-binding offer and industry package for up to twelve submarines as part of the Canadian submarine procurement program together with Germany and Norway. TKMS is also conducting final contract negotiations with India for the construction of six submarines.
Paul Glaser, CFO of TKMS: “Given our high order backlog, consistent and efficient execution of our projects is the top priority for TKMS. The strong increase in revenue and profitability in the first half of the year is primarily attributable to progress in the newbuild business, the growing share of highermargin projects in the Submarines segment, and growth in the Atlas Electronics segment. We therefore believe we are well on track to achieve our target for sales growth of two to five percent and an adjusted EBIT margin of over six percent for the current year.”
Shortly after the end of the first half of the year, TKMS continued to make further progress: 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, TKMS concluded a non-binding Memorandum of Understanding with regard to the potential manufacture of TKMS products at Navantia’s shipyard locations in Spain. Following the submission of a non-binding offer to acquire German Naval Yards Kiel in January 2026, TKMS and the owners continue to conduct open-ended discussions.
Furthermore, TKMS became the first company to receive an Approval in Principle (AiP) for an autonomous underwater vehicle in the “Extra-Large Unmanned Underwater Vehicles” (XLUUV) class. The AiP marks a pioneering milestone in the certification process for large autonomous underwater vehicles.
In April, the relevant Supervisory Board committees of TKMS appointed Dr. Andreas Görgen as an additional member of the Executive Board. In his new leadership role, Dr. Andreas Görgen will ensure consistent execution of the order book.
Furthermore, he will contribute to technology development and the expansion of the product pipeline, as well as explore and establish potential new partnerships for TKMS to support international growth.
First half of 2025/2026: Key figures for TKMS in detail
Order intake remained at a high level in H1 2025/26 at €3,409 million (previous year: €5,597 million). The book-to-bill ratio thus remained well above 3x. The high order intake in the first half of the year was driven in particular by the Norwegian government’s order for the construction of two additional Type 212CD submarines, bringing the total number of boats intended for the Norwegian Navy from four to six. Moreover, in the Naval Electronics area, the framework agreement with the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) was signed for the delivery of heavyweight torpedoes and associated equipment for the 212CD submarines.
Order intake in the same period of the previous year was exceptionally high, due to the order expansion for the German-Norwegian 212CD submarine program and the contract for the new Polarstern.
The order backlog hit a new record of around €20.6 billion (September 30, 2025: €18.2 billion).
The TKMS Group’s sales amounted to €1,168 million, significantly higher than in the same period of the previous year (H1 2024/25: €1,060 million). This increase in revenue resulted primarily from the scheduled execution of the high order backlog.
Adjusted EBIT also rose significantly, reaching €60 million (previous year: €53 million). This positive development was mainly driven by scheduled progress in newbuild projects, with a corresponding increase in the proportion of higher-margin projects. Contracts at Atlas Electronics remained key drivers. The adjusted EBIT margin improved slightly to 5.1% (H1 2024/25: 5.0%).
Free cash flow amounted to €-72 million and was therefore, as expected, below the level of the prior-year period, which was characterized by very high prepayments (H1 2024/25: €756 million).
Development in the TKMS segments in H1 2025/26
Submarines
Sales in the Submarines segment amounted to €601 million (H1 2024/25: €622 million). The slight decline was primarily due to delivery effects in the prior-year period as well as timing shifts during the year relating to the ramp-up of new construction business in the first half of 2025/26.
At the same time, adjusted EBIT in the Submarines segment increased significantly to €21 million (H1 2024/25: €2 million). The main drivers of this development were the growing ramp-ups in newbuild projects, while the burdens from legacy projects decreased.
Surface Vessels
Sales in the Surface Vessels segment increased to €277 million (H1 2024/25: €210 million). Significant revenue contributions resulted from the execution of existing contracts, in particular the Tamandaré contract for the Brazilian customer and the new Polarstern for the Alfred Wegener Institute, Helmholtz Centre for Polar and Marine Research. Adjusted EBIT in the Surface Vessels segment was €18 million (H1 2024/25: €23 million). This development was mainly due to increased administrative costs as a result of tariff wage increases and hiring increase in connection with capacity expansion amongst other factors. Furthermore, investments in sales campaigns were stepped up to secure the anticipated order intake from the German customer.
Atlas Electronics
In the Atlas Electronics segment, sales rose significantly to €376 million (H1 2024/25: €300 million). Adjusted EBIT increased substantially to €41 million (H1 2024/25: €24 million). The increase in both sales and adjusted EBIT is primarily attributable to a higher order level, which is reflected earlier in the financial results due to the comparatively short project duration in the Atlas Electronics segment.
Outlook
TKMS is on track to achieve the targets published in February 2026. Based on the first half of 2025/26, TKMS continues to expect the adjusted EBIT margin to exceed 6% in fiscal year 2025/26, representing a further increase compared to the previous year (2024/2025: 6.0%). In addition, the TKMS Group continues to expect sales to grow by 2% to 5% compared to the 2024/2025 fiscal year.
In the medium term, TKMS continues to aim for continuous sales growth with an average annual growth rate of around 10%, with increasing growth momentum
also expected. At the same time, the adjusted EBIT margin is expected to exceed 7% over the medium term.
