Naval shipbuilder TKMS is in advanced takeover negotiations with its neighbouring shipyard in Kiel, German Naval Yards. TKMS CEO Oliver Burkhard said that the company is currently in the „pre-due diligence“ phase, adding that „it would be a good opportunity, but not a must.“

„We will look at it very quickly and make a decision very soon, within the next few weeks", he said.

Consolidation at the European level is an issue that Burkhard said is being addressed on many of his trips abroad. In this regard, Germany could be the consolidation hub for maritime defence. Germany's largest defence contractor, Rheinmetall, announced in September that it would acquire the naval division of the Lürssen Group, Naval Vessels Lürssen (NVL). Like German Naval Yards, NVL makes warships such as frigates and corvettes.

German Naval Yards belongs to the French shipyard group CMN Naval. At its Kiel location, German Naval Yards already shares the factory premises with TKMS. The two shipyards emerged from the former HDW (Howaldtswerke Deutsche Werft AG). In mid-November, Burkhard confirmed talks with German Naval Yards.

The takeover of NVL by Rheinmetall will not change anything for TKMS for the time being, especially since there are only overlaps in surface shipbuilding, the TKMS boss explained. Burkhard hinted that it was only TKMS's independent status that had made the talks with German Naval Yards possible. TKMS has been listed on the Frankfurt Stock Exchange since its IPO in October, and was recently promoted to the MDax. However, the Essen-based parent company Thyssenkrupp continues to hold the majority stake.

In the fiscal year ending in September, TKMS achieved impressive growth rates in virtually all key figures. Order intake increased sixfold to 8.8 billion euros. The order backlog amounted to 18.2 billion euros on the balance sheet date, securing capacity utilisation for the coming years. Sales improved by 9% to 2.2 billion euros in the reporting year, while adjusted earnings before interest and taxes (Ebit) increased by more than half to 131 million euros. The bottom line was 108 million euros (previous year: 88 million euros). However, TKMS does not intend to start paying dividends until the current fiscal year. Then, 30% to 50% of net profit is to be distributed.

Nevertheless, the Kiel-based company has set itself more modest targets for the next cycle. Sales are expected to remain largely at the previous year's level, ranging from -1% to +2%. Adjusted Ebit is forecast to be in the range of 100 to 150 million euros. Chief Financial Officer Paul Glaser hinted that the upper end of the target range is being considered. This has to be the case, otherwise the announced margin improvement cannot be achieved. The management board promised that the forecast will be detailed and narrowed down when the report for the first quarter is presented.

In order to process the influx of orders, capacity at the Wismar site is currently being expanded. TKMS is investing 200 million euros in this project. Norway is covering part of the costs, as the Scandinavians are keen to see orders processed quickly. Production is scheduled to start in 2026.