TKMS, the recently spun-off submarine manufacturer, used its inaugural annual general meeting as a publicly listed company to outline an ambitious strategy. Chief Executive Oliver Burkhard emphasized the firm’s readiness to spearhead consolidation within Europe’s fragmented naval defense sector, stating that financial resources alone are insufficient for shipbuilding success.
The virtual shareholder meeting, commencing at 10:00 CET, represents a significant milestone for the company, which separated from thyssenkrupp in October 2025. Beyond routine agenda items like the adoption of the annual financial statements, the focus rested squarely on Burkhard’s strategic vision. According to Reuters, the CEO signaled TKMS’s intention to assume a leading role in merging key industry players across Germany and Europe, advocating for greater standardization and accelerated processes.
Strong Financial Backing for Strategic Moves
This consolidation push is bolstered by a robust financial position. On February 11, TKMS reported powerful figures for the first quarter of the 2025/26 fiscal year. The order backlog surged by 13 percent to a record €18.7 billion. Consequently, the company raised its full-year revenue growth forecast to a range of 2 to 5 percent, a notable upgrade from prior guidance of -1 to +2 percent. TKMS also targets an adjusted EBIT margin above 6 percent, with a medium-term goal exceeding 7 percent.
German Naval Yards Kiel: A Key Test Case
The company’s strategic ambitions are immediately being tested through its ongoing takeover bid for German Naval Yards Kiel (GNYK). Burkhard confirmed on February 11 that in-depth discussions and due diligence are underway. The two shipyards are direct neighbors in Kiel, both tracing their origins to the former Howaldtswerke-Deutsche Werft (HDW). However, TKMS faces competition from other interested parties, including the UK’s Inocea Group.
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This activity occurs against a backdrop of rapid change in the German naval industry. Rheinmetall has already completed its acquisition of the defense division of Bremen-based Lürssen Werft (NVL), underscoring the ongoing wave of mergers and acquisitions.
Parallel Pursuit of Major Canadian Submarine Contract
Simultaneously, TKMS is advancing its bid for Canada’s multi-billion dollar submarine procurement program. Since January, the firm has secured a series of strategic partnerships to strengthen its offer. These include collaborations with Cohere for artificial intelligence capabilities, Seaspan Shipyards for maintenance, EllisDon for upkeep and infrastructure, and Magellan Aerospace for torpedo production.
The competition for a contract covering up to twelve submarines is considered one of the world’s largest defense procurements. Canada aims for the delivery of its first new submarine by 2035. Hanwha Ocean of South Korea is the primary competitor for the award.
The coming weeks are expected to bring clarity on both fronts: the outcome of the GNYK negotiations and progress on the Canadian bid. Investors will gain further insight with the release of the half-year report on May 11.
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