TKMS (TKMS) investor relations material

Executive summary

• Achieved 19% year-over-year sales growth to €1,890 million in the first nine months, driven by strong project execution, robust order intake, and major contract wins in Germany and Canada.

• Adjusted EBIT rose 13% to €110 million, with a margin of 5.8%, reflecting ramp-up of new projects and higher administrative costs from the spin-off.

• Order backlog reached €20.1 billion at the end of June, now exceeding €25 billion after recent contract wins, and up 10% year-to-date.

• Upgraded full-year guidance for both sales and adjusted EBIT margin, reflecting strong operational momentum and improved execution.

• Free cash flow turned negative at €-204 million, impacted by milestone payment timing and project-related outflows.

Financial highlights

• Sales increased 19% year-over-year to €1.89 billion for the first nine months; adjusted EBIT rose 13% to €110 million, with a margin of 5.8%.

• Order intake for the first nine months exceeded €3.6 billion, with a book-to-bill ratio of approximately 2x.

• Net income for 9M: €56 million (down from €75 million YoY); EPS: €0.77.

• Strong liquidity position with €1,218 million in cash and cash equivalents as of June 2026.

• Equity ratio slightly decreased to 19.9%.

Outlook and guidance

• Full-year sales growth guidance raised to 10–12% (previously 2–5%), with expectations to reach the upper end.

• Adjusted EBIT margin guidance increased to up to 6.5%, driven by strong performance in submarines and Atlas Elektronik.

• Medium-term targets: ~10% revenue CAGR, >7% EBIT margin, >€400 million cumulative free cash flow over three years, and 30–50% dividend payout ratio starting 2027.

• Strategic investments of ~€200 million planned, mainly for Wismar site expansion.