- Order backlog hits new record high of € 18.7 billion.
- Stable development in sales and adjusted EBIT.
- Forecast for sales raised: TKMS expects sales growth of +2% to +5% compared to the previous year with an adjusted EBIT margin of over 6%.
- Medium-term targets, including an adjusted EBIT margin of >7%, confirmed.
Kiel, February 11, 2026 – TKMS AG & Co. KGaA (TKMS) remains on course for growth: For the first quarter of the 2025/26 financial year, the Group is reporting continued positive order momentum and stable development in both sales and adjusted EBIT.
TKMS recorded a solid order intake with new orders worth € 904 million, including the largest torpedo order in the Group’s history for the German Navy. The order backlog thus reached a new record level of around € 18.7 billion. This does not include the latest order from Norway for two additional Type 212CD submarines, which was signed after the reporting date.
In line with the project progress made in existing programs, sales were stable at € 545 million, 1% below the first quarter of the previous year (€ 550 million). The adjusted EBIT was also stable at € 26 million (Q1 2024/25: € 26 million). The adjusted EBIT margin also improved slightly to 4.8% (Q1 2024/25: 4.7%).
Free cash flow remained positive and amounted to € 33 million (Q1 2024/25: € 901 million). The exceptionally high comparative figure was mainly due to significant customer prepayments in connection with a record order intake.
TKMS has raised its sales forecast for the financial year 2025/26. TKMS now expects sales growth of +2% to +5% compared to the previous year (previously: -1% to +2%) and an increase in the adjusted EBIT margin to over 6%. Over the medium term, TKMS continues to expect an adjusted EBIT margin of over 7%.
Oliver Burkhard, CEO of TKMS, declared: “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.”
The ongoing sales campaigns underline the strong market position of TKMS in both national and international competition. In August, TKMS was selected as one of only two remaining applicants for the Canadian tender regarding the procurement of up to twelve submarines. In India, TKMS together with its local partner has started final negotiations on an order for six submarines. In addition, the TKMS-led joint venture with the MEKO® A-400 design remains the sole bidder in the selection process for the future German air defense frigate F127, for which the German Bundestag approved the initial funding for the project launch at the end of 2024.
Work has commenced on modernizing the shipyard location in Wismar for the construction of submarines and surface vessels. At the beginning of January, over 140 new employees started work at the Wismar site. It is expected that, at full capacity, up to 1,500 new jobs will be created in Wismar.
Paul Glaser, CFO of TKMS, emphasized: “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%.”
First quarter 2025/2026: Key figures for TKMS in detail
Order intake amounted to € 904 million in Q1 2025/26 (previous year: € 5,440 million). In Q1, TKMS and the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) signed a framework agreement for the supply of DM2A5 heavyweight torpedoes and associated equipment for the Type 212CD submarines. New orders in the same period of
the previous year were exceptionally high due to individual contracts in the Submarines and Surface Vessels areas.
The order backlog reached a new high of around € 18.7 billion (September 30, 2025: € 18.2 billion).
TKMS Group sales amounted to € 545 million and were stable compared to the same period of the previous year (Q1 2024/25: € 550 million) with a slight decrease of 1%. Positive effects were achieved particularly in the new construction business of the Surface Vessels segment and in the Atlas Electronics segment.
Adjusted EBIT was also stable and amounted to € 26 million (Q1 2024/25: € 26 million). The prior-year quarter was characterized by positive exchange rate effects and the revaluation of provisions, among other things. The adjusted EBIT margin improved slightly to 4.8% (Q1 2024/25: 4.7%).
Free cash flow amounted to € 33 million and was therefore, as expected, below the level of the same period in the previous year, which was characterized by very high advance payments (Q1 2024/25: € 901 million).
Development in the TKMS segments in Q1 2025/26
Submarines
Sales in the Submarines segment amounted to € 231 million (Q1 2024/25: € 315 million). The decline was mainly due to sales in the service business already brought forward in the previous quarter and the usual shifting effects in the recognition of sales between quarters as part of a business model characterized by large-scale project business.
Adjusted EBIT in the Submarines segment amounted to € -4 million (year-ago quarter: € -1 million). Besides additional costs due to the operational ramp-up in Wismar, the shift in revenue recognition was also a driving factor here. Higher sales costs as well as research and development costs were also incurred.
Surface Vessels
Sales in the Surface Vessels segment increased to € 174 million (Q1 2024/25: € 126 million). This was due in particular to higher sales in the new construction business. Adjusted EBIT in Surface Vessels amounted to € 12 million (Q1 2024/25: € 13 million). This was mainly a result of higher sales costs and general administrative expenses and a positive exchange rate effect in the comparative quarter of 2024/25.
Atlas Electronics
At Atlas Electronics, sales increased significantly to € 185 million (Q1 2024/25: € 141 million). Adjusted EBIT increased to € 22 million (Q1 2024/25: € 10 million). The increase in both sales and adjusted EBIT is mainly due to a higher order situation and the resulting growth.
Outlook
In the medium term, TKMS continues to target 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.
Based on current projections, we continue to expect to achieve results at least on a par with the previous year and to further improve our EBIT margin to over 6%.
We also expect sales to grow compared to the previous year. The sales forecast has been adjusted upwards accordingly. The forecast takes into account both the project-based profile of TKMS and a conservative planning approach.
