The defense group TKMS has reported slightly higher revenues and results than expected in the first semester, driven by increased demand for armaments. The adjusted operating result (Ebit) increased by about 14% to reach 60 million euros, the company announced on Monday. Revenues climbed by 10% to 1.17 billion euros. This growth was mainly led by the submarine and sonar technologies divisions. Thanks to new orders, the order intake reached 3.4 billion euros, bringing the order backlog to a new historical peak of 20.6 billion euros by the end of March.
The demand for armaments following the invasion of Ukraine by Russia and the US administration’s commitment to NATO is providing European defense groups with many new contracts. German leader Rheinmetall is also breaking records. As part of their respective expansions, TKMS and Rheinmetall both aim to acquire the German Naval Yards Kiel (GNYK) shipyard. Both groups have submitted non-binding offers. Discussions between TKMS and GNYK owners continue ‘without predetermined results,’ TKMS clarified.
The group says it is on track to meet its annual targets for the 2025/26 fiscal year. By that time, the adjusted Ebit margin is expected to be above 6%. It stood at 5.1% in the first semester. Revenues are expected to increase by 2% to 5% compared to the previous year.
(Matthias Inverardi reporting. Written by Ralf Bode. For any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and current affairs) or frankfurt.newsroom@thomsonreuters.com (for businesses and markets).)
