TKMS Raises Sales Outlook Amid European Rearmament Boom

TKMS AG & Co. raised its full-year sales outlook to a projected increase of 10% to 12% for the fiscal year ending in September. The German naval shipbuilder expects its adjusted operating margin to reach up to 6.5%, marking its second guidance upgrade this year.

This growth follows a European rearmament boom and increased military budgets triggered by Russia's invasion of Ukraine. The company reports surging demand for its MEKO warships, underwater electronics, and non-nuclear submarines. Key earnings contributors include higher-margin projects such as Type 218SG submarines for Singapore and Type 212CD submarines for Germany and Norway.

Recent business wins include the selection of TKMS as the preferred supplier for Canada's new submarine fleet and the procurement of a German frigate order. The company was spun off from Thyssenkrupp AG last year, though the industrial conglomerate retains a 51% stake in the shipbuilder.