TKMS Chief Pushes Back on Capacity Doubts as Order Book Balloons Past €20 Billion
Published on 07/20/2026 at 06:52 | Redaktion boerse-global.de
Oliver Burkhard, chief executive of ThyssenKrupp Marine Systems (TKMS), has dismissed concerns that the shipbuilder's sprawling order backlog – now ten times annual revenue – is stretching operational resources too thin. In an interview with the Frankfurter Allgemeine Zeitung, Burkhard acknowledged the scale of the challenge but insisted the company was ready to execute on all fronts, pointing to a potential €8 billion submarine contract with India that he expects to be finalised by the end of 2026. The deal, one of the largest single orders in TKMS history, would further swell an order book that already stood at a record €20.6 billion at the halfway point of fiscal 2025/26.
The company's first-half figures underscore the extent of the ramp-up. Revenue climbed 10% year-on-year to €1.168 billion, while adjusted EBIT rose 14% to €60 million. Both numbers were reported before the latest wave of contract wins in July, which included being named preferred bidder for Canada's Canadian Patrol Submarine Project. That programme envisions up to twelve Type 212CD submarines, with a construction value estimated at €12 billion to €20 billion. Together with the India prospect, the pipeline has turned the spotlight squarely on TKMS's ability to convert paper orders into steel in the water.
Beyond the headline-grabbing submarine deals, TKMS has been building out its supply chain and extending its geographic footprint. In April, the group signed a strategic partnership with Greece's Skaramangas Shipyards for a mid-life upgrade of the Hellenic Navy's Type 214 submarines. Meanwhile, a €800 million subcontract with Sweden's Saab – covering combat systems, Sea Giraffe 4A radars and sensors for four new MEKO A-200 DEU frigates – ensures that key components are locked in for the German naval programme.
Should investors sell immediately? Or is it worth buying TKMS?
One cloud on the horizon is a demand from Dutch shipyard group Damen Shipyards for billions of euros in compensation linked to the German F126 frigate programme. The claim is directed at the German government rather than TKMS itself, but the dispute adds an element of uncertainty to one of the company's flagship contracts. Legal specifics remain under wraps, yet the situation bears watching for potential knock-on effects on project timelines.
On the bourse, TKMS shares closed the week at €81.00, up 8.58% over the past month and 22.36% year-to-date. That still leaves the stock 24% below the 52-week high of €106.58 reached on 20 October 2025 – the day it debuted in the Frankfurt Prime Standard at an opening price of €60.00 following the spin-off from ThyssenKrupp. A sharp November sell-off pushed the shares as low as €56.75 before a sustained recovery set in. Deutsche Bank Research, whose €110 price target and Buy rating from early July pre-date both the India news and the Damen claim, sees further upside if the operational momentum continues to build.
Investors will get their next hard look at the numbers on 12 August 2026, when TKMS publishes its third-quarter report. The key question will be whether the record backlog is beginning to translate into top-line growth and margin improvement. Burkhard's assurances on capacity will face their most practical test then, but the imminent signature of the Indian submarine contract – potentially before year-end 2026 – remains the clearest near-term catalyst for the stock.
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