TKMS (TKMS) Q1 25/26 earnings summary

Executive summary

• Achieved inclusion in the MDAX index shortly after spin-off and stock market debut, joining Germany’s 90 largest listed companies.

• Order backlog reached a record €18.7 billion by end of December 2025, with sales coverage at 8.6x and stable financial KPIs.

• Revenue for Q1 25/26 was €545 million, with adjusted EBIT of €26 million and a margin of 4.8%.

• Free cash flow was €33 million, down from a prior year’s extraordinary quarter driven by large prepayments.

• Key operational milestones included MoUs with Canadian firms for submarine production, successful technology demonstrations, and major new orders from Norway and Germany.

Financial highlights

• Revenue stable year-over-year at €545 million, reflecting typical project-based volatility.

• Adjusted EBIT flat at €26 million, with margin slightly improved to 4.8% from 4.7%.

• Net income for Q1 25/26 was €4 million, compared to €24 million in Q1 24/25.

• Operating cash flow was €58 million, with liquidity remaining strong at nearly €1.5 billion.

• Book-to-bill ratio at 1.7, indicating strong order intake relative to sales.

Outlook and guidance

• Upgraded revenue guidance for FY 2025/26 to +2% to +5% growth, up from -1% to +2%.

• Adjusted EBIT margin expected above 6%, with consensus at 6.3%.

• Midterm guidance reaffirmed: ~10% sales CAGR, EBIT margin above 7%, and dividend payout ratio of 30%-50%.

• Cumulative free cash flow of over €400 million targeted over three years.