TKMS (TKMS) investor relations material

Executive summary

• Achieved 19% year-over-year sales growth to €1,890 million in the first nine months of 2025/26, driven by strong project execution, robust order intake, and a historically high order backlog of €20.1 billion, with major contract wins in Germany and Canada.

• Adjusted EBIT rose 13% to €110 million, with a margin of 5.8%, reflecting ramp-up of new projects and higher administrative costs from the spin-off.

• Free cash flow turned negative at €-204 million, impacted by timing of milestone payments, project-related outflows, and lower advance payments.

• Strategic partnerships and MoUs, such as with Navantia and Embraer, aim to enhance innovation and competitiveness.

Financial highlights

• Sales increased by 19% year-over-year to €1.89 billion for the nine-month period; adjusted EBIT: €110 million (+13% YoY); adjusted EBIT margin: 5.8%.

• Order intake for the first nine months was €3.6 billion, with a book-to-bill ratio of approximately 2x.

• Net income for 9M: €56 million (down from €75 million YoY); EPS: €0.77.

• Free cash flow: -€204 million, reflecting timing of milestone payments and project ramp-up.

• Strong liquidity position with €1,218 million in cash and cash equivalents as of June 2026.

Outlook and guidance

• Full-year 2025/26 sales growth guidance raised to 10–12% (previously 2–5%), with adjusted EBIT margin expected up to 6.5%.

• Medium-term targets: ~10% revenue CAGR, adjusted EBIT margin above 7%, and cumulative free cash flow over €400 million in three years.

• Strategic investments of ~€200 million planned, mainly for Wismar site expansion.

• Dividend payout ratio of 30–50% targeted from 2027.