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.

• Focus on partnerships over asset-heavy expansion, leveraging a robust global network and selective contract acquisition.

• Positioned as a fully integrated naval powerhouse, covering submarines, surface vessels, and electronics/software, with a unique one-stop-shop model.

• Anticipates further industry consolidation and aims to be a key player in shaping future naval ecosystems.

Market outlook

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

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

Financial outlook and guidance

• Record order backlog of €18.6 billion as of June 2025, up 50% year-over-year, provides nearly a decade of revenue visibility.

• 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 above 7% driven by higher-margin orders and operational efficiency.

• Maintains a negative working capital model, with pre-funded CapEx and strong cash flow generation; €1.4bn cumulative free cash flow since FY 21/22 and a €400 million rolling three-year free cash flow target.

• Dividend policy set at 30–50% of consolidated net income, starting with fiscal year 2025/26.