Submarine maker TKMS hits record $22 billion order backlog, raises sales outlook

Core Viewpoint - TKMS, a German submarine maker, reported a record order backlog of $22 billion and raised its 2026 sales outlook due to increased demand for warships amid rising geopolitical tensions [1][2]. Group 1: Company Performance - TKMS has experienced a surge in investor demand for shares, driven by the war in Ukraine and U.S. pressure on Europe to enhance military capabilities [1]. - The company expects sales to rise by 2% to 5% in 2026, an increase from a previous forecast of a decline of 1% to an increase of 2% [3]. - In the first quarter of its fiscal year (October to December), sales fell by 1% to €545 million ($649 million), while adjusted operating profit remained stable at €26 million [4]. Group 2: Market Position and Strategy - The spin-off from former parent Thyssenkrupp was motivated by the need to compete more effectively in global submarine tenders, particularly in India and Canada [2]. - CEO Oliver Burkhard emphasized that the company is well-positioned as the only fully integrated maritime systems supplier in Europe to meet the growing demand for advanced maritime capabilities [2][3].