TKMS continues its strong growth course in the third quarter of the 2025/26 fiscal year. Revenue in the first nine months rose by 19%. Supported by an order backlog of around EUR 20 billion and strong demand for naval platforms, management is significantly raising its revenue guidance for the full year.
TKMS: Growth accelerates amid continued strong demand in the naval sector
TKMS achieved revenue of approximately EUR 1.9 billion, representing an increase of 19% year-over-year.
Adjusted EBIT increased to EUR 110 million, compared to EUR 98 million in the prior-year period.
Particularly important is the significant increase in the revenue guidance for the full year. TKMS now expects revenue growth of 10–12% for the 2025/26 fiscal year, compared to the previous forecast of 2–5%.
The more optimistic outlook reflects, in particular, the positive development at ATLAS ELEKTRONIK and in the Surface Vessels division, while moderate growth is expected for the submarine business.
Q3 / 9M 2025/26 at a Glance
| Key Figure | 9M 2025/26 | Year-over-Year Change |
|---|---|---|
| Revenue | EUR 1.9 billion | +19% |
| Adjusted EBIT | EUR 110 million | +12 % |
| Adjusted EBIT Margin | 5.8% | -0.3 percentage points |
| Order Intake | EUR 3.6 billion | -58% |
| Order Backlog | EUR 20 billion | – |
Key Highlights
- Order intake amounted to EUR 3.6 billion, significantly below the EUR 8.6 billion of the comparison period. However, the decline is primarily due to exceptionally large orders in the previous year and not to weaker underlying demand.
- The order backlog remained at a very high level of around EUR 20 billion.
What Defined the Quarter?
The third quarter once again underlined the transformation of TKMS from a traditional naval shipbuilder to a more broadly positioned naval technology and defense company.
The strongest operational momentum is currently coming from ATLAS ELEKTRONIK and the Surface Vessels business unit.
The order backlog of around EUR 20 billion remains one of the most important strengths of TKMS. It corresponds to production capacity utilization over many years.
Key Strategic Developments
In addition to the financial development, the quarter was characterized by several strategically significant developments.
Canada – Significant Opportunity in the Submarine Business
One of the most important developments was Canada’s decision to select TKMS as the preferred provider for the Canadian Patrol Submarine Project.
A final contract has not yet been concluded. The project should therefore not yet be considered part of the secured order backlog.
MEKO A-200 Frigates for Germany
TKMS also made significant progress in the surface vessel sector.
The Budget Committee of the German Bundestag approved the procurement of four MEKO A-200 DEU frigates as well as options for additional ships.
Growing International Demand
Demand is also increasing outside of Europe.
Management pointed to increasing interest from countries in the Persian Gulf, particularly in areas such as mine countermeasure technology.
Order Development
| Key Figure | 9M 2025/26 | 9M 2024/25 |
|---|---|---|
| Order Intake | EUR 3.6 billion | EUR 8.6 billion |
| Order Backlog | approx. EUR 20 billion | – |
Source: TKMS, Q3 2026 Financial Results.
Although order intake fell significantly year-over-year, the comparison is distorted by large orders received in the prior-year period.
The more important indicator for TKMS therefore remains the order backlog.
At around EUR 20 billion, this corresponds to a multiple of current annual revenue and provides the company with a strong foundation for long-term growth.
Updated Forecast for FY2025/26
| Forecast | New Outlook | Previous Outlook |
|---|---|---|
| Revenue Growth | +10–12% | +2–5% |
| Adjusted EBIT Margin | up to 6.5% | over 6% |
The improved outlook represents a significant acceleration compared to expectations at the beginning of the fiscal year.
MUMAK Assessment
The 19% revenue increase, the higher adjusted EBIT, and the significant increase in the annual guidance create a strong foundation for further long-term growth.
Particularly important is the increasing diversification of the business model. TKMS is no longer exclusively dependent on submarine construction. The growing contribution from Surface Vessels and ATLAS ELEKTRONIK expands the company’s addressable market. Canada also represents an additional significant long-term growth opportunity.
Overall, TKMS remains one of the most attractive structural growth stories in the European naval and defense sector.
The Q3 results of TKMS strengthen our positive long-term assessment of the company.
Technical Analysis and Price Reaction
The TKMS share reacted significantly positively to the Q3 results and the raised annual guidance.
The share price jumped towards EUR 99.4, testing the important resistance zone at EUR 99.7–100, which had previously marked a significant high.
The price reaction is relevant from a technical perspective, as the share has overcome short-term resistance in the EUR 93–94 range and is now testing the upper boundary of the broader consolidation formation.
| Indicator | Rating | Interpretation |
|---|---|---|
| RSI (14) | Positive | The daily RSI has risen to around 71, placing it slightly in overbought territory. |
| MACD | Positive | The MACD provides a bullish signal. |
| Bollinger Bands | Positive | The share price has risen sharply towards the upper Bollinger Band and slightly exceeded it. This is another sign of strong buying momentum. |
Overall, the technical picture has significantly improved following the Q3 results. The strong fundamental news was accompanied by a bullish breakout.
MUMAK Assessment – Technical Conclusion
From a technical perspective, TKMS remains bullish. However, the RSI and the position of the share price above the upper Bollinger Band indicate that the stock is increasingly overbought in the short term.
