TKMS (TKMS) CMD 2025 summary

Strategic direction and market positioning

• Emphasizes execution excellence, prudent margin-oriented growth, and multi-asset system integration as core strategic pillars.

• Spin-off from parent company enables strategic independence, faster decision-making, and targeted investor engagement.

• Positioned as a fully integrated naval powerhouse with unique capabilities across submarines, surface vessels, and electronics, leveraging a one-stop-shop model.

• Focus on partnerships, selective growth, and flexible operating models to scale capacity and access local markets.

• Deep, long-term government relationships and a global customer base reinforce recurring revenue and service opportunities.

Market outlook

• Attainable market for naval solutions is projected to nearly double by 2033, driven by rising defense budgets and evolving naval doctrines.

• Robust pipeline of must-win programs, including major campaigns in Canada, India, and Germany.

Financial guidance and performance

• Record order backlog of €18.6 billion as of June 2025, providing nearly a decade of revenue visibility and supporting a 10% sales CAGR target.

• Sales grew at a 9.2% CAGR from FY 21/22 to Q3 24/25A LTM, with Q3 24/25A LTM sales at €2.2bn.

• Adjusted EBIT margin improved from 2.0% in FY 21/22 to 5.5% in Q3 24/25A LTM, with a midterm target set above 7%.

• Strong cash generation with negative working capital, pre-funded CapEx, and €1.4bn cumulative free cash flow since FY 21/22.

• Capital structure is debt-free, with over €1.1 billion in liquidity and a planned dividend payout of 30–50% of net income.