Largest German shipyard, TKMS, breaks free from affiliations

Germany's Largest Naval Shipbuilder TKMS Spins Off and Prepares for IPO

Thyssenkrupp Marine Systems (TKMS), Germany’s largest naval shipbuilder, has been spun off from Thyssenkrupp AG and is preparing for an Initial Public Offering (IPO) planned for 2025. The spin-off was approved by Thyssenkrupp shareholders in August 2025, establishing TKMS as an independent maritime defense systems provider, while Thyssenkrupp retains a 51% majority stake [1][4].

Independence and IPO

TKMS is transitioning into a publicly listed company on the Frankfurt Stock Exchange’s Prime Standard segment within 2025. As part of the spin-off, 49% of shares will be distributed directly to Thyssenkrupp shareholders proportional to their holdings, enabling TKMS to pursue independent growth and innovation while still supported by its majority shareholder [1][2][4].

Strong Financial Position

TKMS enters this new phase with a solid order backlog of approximately €18.5 billion as of mid-2025, indicating significant demand for its submarine and naval platforms despite losing the recent Australian frigate contract. Its strong order book supports expectations of stable revenues and earnings growth going forward [1][2][3].

Growth Opportunities

Market analysts and TKMS itself anticipate growth driven by long-term geopolitical developments and increasing demand in maritime defense. The spin-off aims to enhance TKMS’s financial independence, operational flexibility, and innovative capabilities to capture these opportunities more effectively [1][2].

Strategic Alliances and Market Position

TKMS remains a key player globally, known for its submarine designs and naval platforms. It has ongoing collaborations (e.g., with Fincantieri on some projects) and faces competitive pressures from companies like Naval Group and others in this specialized defense market [5].

Outlook & Investor Engagement

Ahead of the IPO, TKMS is preparing a Capital Markets Day (scheduled for late September 2025) to present its independent strategy and growth prospects to investors and stakeholders [2].

Notable Orders and Employment

TKMS has recently been awarded the construction of the new German research vessel 'Polarstern 2' for extreme climate and weather conditions, with an order volume of around 1.2 billion euros. The company employs around 8,300 people across shipyard locations in Kiel, Wismar, Itajaí (Brazil), Hamburg, Bremen, and Emden, among others [1].

Singapore has recently ordered two more submarines from TKMS for the Indo-Pacific region, and TKMS has full order books and numerous submarine orders from Germany, Norway, Israel, and Singapore [1].

Supervisory Board and Security Agreement

It is still unclear who will be in the TKMS supervisory board. Hendrik Schmidt of the fund company DWS criticized the planned management structure, as six out of ten supervisory board members are determined by Thyssenkrupp, making the promised independence initially a journey under supervision. The security agreement is expected to be concluded by the end of September [1].

Future Dialogue with the Federal Government

The federal government’s entry into TKMS remains a possibility, but not part of the current plan. The TKMS supervisory board chairman, Volkmar Dinstuhl, stated that ThyssenKrupp AG is open to further dialogue if there is interest from the federal government [1].

Leadership

Oliver Burkhard is the CEO of TKMS. The attractiveness for investors increases due to the spin-off’s clear business models, eliminating the disadvantages of a conglomerate. Shareholders, including Marc Tüngler of the German Shareholder Association (DSW), have expressed positive sentiments about the spin-off, believing it could lead to better corporate management and decisions [1].

World Market Leader in Conventional Submarines

Thyssenkrupp Marine Systems (TKMS) is the world market leader in conventionally powered submarines [1]. Schmidt called for the supervisory body to be predominantly independently staffed to safeguard the interests of minority shareholders [1]. The overall order backlog of TKMS has grown by more than 50% since the end of September to over 18 billion euros [1].

[1] - Bild am Sonntag [2] - Handelsblatt [3] - Reuters [4] - Bloomberg [5] - Naval News