TKMS: Germany’s Naval Powerhouse Charts New Course After Historic Spin-Off

Kiel, 19 January 2026 – ThyssenKrupp Marine Systems, now operating as the independent TKMS AG & Co. KGaA, has completed one of the most significant transformations in European defence industry history. Emerging from its former parent conglomerate, the company has cemented its status as a leading global provider of conventional submarines and naval systems, buoyed by record orders, a successful stock market listing, and a strategic bid to consolidate the German shipbuilding sector.

From Corporate Division to Stock Market Standout

The journey to independence culminated on 20 October 2025, when TKMS made its debut on the Frankfurt Stock Exchange. The initial public offering (IPO) was met with strong investor appetite, driven by the global defence spending surge, and saw TKMS’s valuation briefly surpass that of its former parent, Thyssenkrupp AG. Thyssenkrupp retains a 51% strategic majority stake, with the remaining shares in free float. The company’s rapid ascent was further validated just weeks later when it was admitted to Germany’s MDAX index on 22 December 2025, joining the ranks of the country’s 90 most important listed companies.

Financial Fortress: A Record Order Backlog

The confidence from investors is underpinned by an unprecedented order book. Presenting its fiscal year 2024/2025 results in December, TKMS reported an order backlog that had surged to €18.2 billion as of September 2025, a 55% year-on-year increase. This provides visibility for production well into the 2040s. For the full year, the company achieved revenues of €2.2 billion and a 53% rise in adjusted EBIT to €131 million.

Flagship Programmes and Strategic Wins

The backlog is dominated by several landmark programmes. The German-Norwegian Type 212CD submarine project forms its cornerstone. In December 2024, the German Bundestag approved an order for four additional boats, bringing Germany’s total to six and making it one of the largest single orders in TKMS’s history. Norway has also signalled its intent to order two more, which would bring its total to six. The company is also modernising the German Navy’s existing fleet under a separate €800 million service contract signed in June 2025, covering the comprehensive upgrade of six Type 212A submarines over ten years.

Internationally, TKMS is progressing with the delivery of MEKO® frigates to Egypt, constructing Tamandaré-class frigates in Brazil, and building Invincible-class (Type 218SG) submarines for Singapore, with a follow-on order received in 2025. The company remains a finalist in major future competitions, including Canada’s programme for up to twelve new submarines.

Consolidation and Competition

In a move signalling its ambition to shape the European naval landscape, TKMS confirmed in January 2026 that it had submitted a non-binding bid for smaller domestic competitor German Naval Yards Kiel (GNYK). This potential acquisition aligns with CEO Oliver Burkhard’s stated goal of leading consolidation within the German and European shipbuilding industry. The sector is already seeing realignment, exemplified by Rheinmetall’s agreement in September 2025 to acquire NVL (Naval Vessels Lürssen).

Frequently Asked Questions

What does TKMS stand for and what does it do?

TKMS stands for ThyssenKrupp Marine Systems. It is a German naval systems company and a world leader in building non-nuclear (conventional) submarines, as well as a major supplier of surface vessels like frigates and corvettes, and naval electronics through its Atlas Elektronik subsidiary.

Why was TKMS spun off from Thyssenkrupp?

The spin-off was part of Thyssenkrupp’s broader strategy to transform into a holding company and allow its individual business units greater agility and focus. For TKMS, independence is seen as crucial to better capitalise on the booming global defence market, make faster decisions, and pursue its own growth and consolidation strategies.

What is driving TKMS’s current success?

The primary driver is the significant increase in defence budgets across Europe and among NATO allies following Russia’s invasion of Ukraine, a shift Germany terms the “Zeitenwende” (turning point). This has led to urgent procurement programmes for modern naval assets, directly benefiting TKMS’s order book.

What are the Type 212CD submarines?

The Type 212CD (Common Design) is a next-generation, conventionally powered submarine developed jointly by Germany and Norway. It is larger and more advanced than the preceding 212A class, featuring improved stealth (signature reduction), enhanced sensor suites, network-centric warfare capabilities, and air-independent propulsion based on fuel cells for extended underwater endurance.