TKMS (TKMS) investor relations material

Executive summary

• Achieved record order backlog of €20.6 billion as of March 2026, driven by major submarine and torpedo contracts and successful project deliveries.

• Sales rose 10% year-over-year to €1,168 million in H1 2025/26, with adjusted EBIT up 14% to €60 million and margin at 5.1%.

• Free cash flow was negative at €(72) million, reflecting planned project-related outflows and timing of milestone payments.

• Major project milestones included submarine deliveries, first Tamandaré frigate to Brazil, and significant supplier contracts for research vessels.

• Company listed on the stock exchange in October 2025 and admitted to the MDAX, with management board expanded by new COO.

Financial highlights

• Order intake for H1 2025/26 was €3.4 billion, with a book-to-bill ratio above 3x and order backlog up 13%.

• Gross margin improved 26% to €208 million, with gross margin percentage rising to 18%.

• Net income fell to €27 million, mainly due to higher taxes and lower financial income; EPS at €0.38.

• Net financial position at €975 million and liquidity at €1,350 million as of March 2026.

• Net working capital remained negative at €(1,296) million, reflecting industry-standard prepayments.

Outlook and guidance

• Full-year 2025/26 guidance confirmed: revenue growth of 2–5% and adjusted EBIT margin above 6%.

• Medium-term targets: average annual sales growth of ~10% and adjusted EBIT margin above 7%.

• Rolling 3-year cumulative free cash flow expected to exceed €400 million starting FY25/26.

• CAPEX projected at ~€200 million for FY25/26, focused on production capacity and technology upgrades.

• Dividend payout ratio targeted at 30%-50% of net income, subject to free cash flow coverage.