TKMS announced that its order backlog has climbed to a fresh high of $22 billion and that it has raised its sales outlook for 2026, attributing the momentum to elevated demand for warships amid intensifying geopolitical tensions.
The German submarine and maritime systems firm now projects sales to expand by 2% to 5% in 2026. That replaces its earlier guidance, which ranged from a decrease of 1% to growth of up to 2% for the same year. market analysts polled by LSEG currently hold an average forecast of 2.9% for TKMS' 2026 sales.
"In view of current geopolitical developments, our customers continue to show a high demand for advanced maritime capabilities," CEO Oliver Burkhard said, highlighting the link between geopolitical dynamics and procurement activity. The company noted its position as the only fully integrated maritime systems supplier in Europe and said this gives it a broad capability to address various customer requirements across the sector.
TKMS was spun off from Thyssenkrupp last year. The company said the surge in orders and the improved sales outlook coincide with increased investor interest in defense and weapons manufacturers, a trend that has gained traction in recent months. That investor attention has been fuelled by the war in Ukraine and by U.S. pressure on European nations to bolster their defense capabilities.
Financial details in the announcement included the exchange rate of $1 equal to 0.8391 euros for context.
Context and implications
Management attributed the stronger backlog and higher sales guidance to sustained customer demand for maritime defense systems, positioning TKMS to potentially benefit from continued procurement programs. The company emphasized its integrated position in the European maritime supply chain as a strategic advantage in meeting demand across multiple dimensions of the industry.
Market reaction and investor interest
Like other firms in the defense sector, TKMS has seen heightened investor interest amid the security environment prompted by the conflict in Ukraine and policy pressure for increased defense spending in Europe. The company also faces market comparisons to consensus analyst forecasts, with its new sales range placed close to the LSEG poll average.
What was not disclosed
The company provided the updated backlog figure and sales guidance but did not include further detail in this announcement about the composition of the backlog, the timing of deliveries, or specific contract counterparties.