German Warship Builder TKMS Raises 2026 Outlook

Warship manufacturer TKMS on Wednesday raised its outlook for the second time in six months, expecting higher demand for surface vessels such as frigates as well as for its sensors and mine-sweeping technology.

TKMS has been one of the main beneficiaries of Europe's push to build up its defenses in light of dwindling U.S. support, scoring several landmark deals in recent months, including one for Germany's navy as well as a submarine agreement with Canada.

"Our recent successes confirm our outstanding positioning as a maritime powerhouse - both nationally and internationally," CEO Oliver Burkhard said. "They are a strong sign of confidence in our ability to perform and deliver."

The company, majority-owned by Thyssenkrupp, now expects sales to grow by 10-12% in its financial year ending September 30, up from 2-5% previously and also beating the 4% estimate in a poll it provided.

Its operating profit margin is now seen at up to 6.5% for the year, higher than the 6.4% poll estimate and comparing with a previous forecast for a margin of more than 6%.

Nine-month operating profit rose 13% to €110 million ($127 million), beating the €101 million poll. Its order book slightly shrunk to €20.1 billion at the end of June, down from €20.6 billion at the end of the previous quarter.

(Reuters - Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Susan Fenton, Kirsti Knolle)