TKMS: A Kiel Shipbuilder's Twin-Track Momentum as Berlin and Tel Aviv Lock In Decades of Work
Published on 08/06/2026 at 21:11 | Redaktion boerse-global.de
The handover ceremony in Kiel on 22 July closed one chapter and opened another for thyssenkrupp Marine Systems. The INS Drakon — the sixth and final submarine of the Dolphin-II class — formally passed to the Israeli Navy, bringing to an end a construction programme that stretched across more than a decade. Originally slated to carry the name Dakar, the boat was rechristened following protests from the families of those affected, a detail that briefly overshadowed what was otherwise a landmark moment for the German defence contractor.
A Submarine That Pushes the Envelope
The Drakon is no ordinary addition to Israel's underwater fleet. At roughly 550 million euros — around 634 million US dollars — it stands as the most expensive submarine ever built for the Israeli Navy. Its specifications are equally striking: approximately 73 metres in length, a submerged displacement of 2,400 tonnes (with some estimates running as high as 3,000), ten torpedo tubes split between 533-millimetre and 650-millimetre calibres, and a top speed exceeding 25 knots. The boat's fuel-cell AIP propulsion system allows for extended submerged patrols, while its elongated hull and unusually large superstructure have prompted speculation — unconfirmed — that it may conceal launch cells for cruise missiles. Russian intelligence vessels were reportedly spotted monitoring the construction phase in 2024, a sign of the strategic sensitivity surrounding the project.
The Drakon is not merely the culmination of the Dolphin programme; it also serves as a test platform for what comes next. The vessel forms part of a broader contract, signed in 2022, worth approximately three billion euros and covering three additional submarines of the upcoming Dakar class, deliveries of which are scheduled to begin in 2031. Germany is shouldering roughly one-fifth of the total cost, according to reports from those familiar with the deal.
Berlin's Frigate Pivot Reshapes the Competitive Landscape
While the Israeli submarine business has been a reliable revenue stream for TKMS, the company's domestic prospects have brightened considerably in recent weeks. The collapse of the F126 frigate programme — originally led by Rheinmetall — at the end of June has handed TKMS a significant opening. That project unravelled after costs ballooned to nearly 18 billion euros, forcing Rheinmetall to trim its 2026 revenue guidance by up to 300 million euros to a range of 13.7 to 14.2 billion euros, despite a strong first half in terms of sales and profit.
Should investors sell immediately? Or is it worth buying TKMS?
In place of the F126, Berlin has opted for TKMS's smaller MEKO A-200 DEU design. The budget committee of the Bundestag approved 6.3 billion euros in funding on 8 July for four vessels, with an option for four more — though the final contract with TKMS has yet to be signed. Work is already underway in Bremerhaven, where the first steel was cut in February and the keel laid in May. The frigates, measuring 121 metres in length and displacing around 4,000 tonnes, will carry a crew of 121 and come equipped with bow and towed sonar, MU90 torpedoes, and air-defence systems. First delivery is pencilled in for December 2029.
The shift in fortunes is not lost on the market. Rheinmetall's marine division posted an 18-million-euro loss in the first half, and its shipyard subsidiary NVL has indicated it will need new orders from mid-2027. TKMS, by contrast, is now positioned as the established player in Germany's surface-fleet renewal. The competitive picture remains fluid, however: Rheinmetall chief Armin Papperger is reportedly in talks with TKMS about a possible role in a future F128 frigate project, while simultaneously marketing its own GMF140 design internationally.
Investors Take Notice — But Not Everything Runs Smoothly
The market has responded favourably to the dense run of positive headlines. TKMS shares were trading around 89.80 to 90.30 euros on Thursday, gaining between 1.70 and 2.27 percent on the day depending on the reporting window. Over the preceding seven trading sessions, the stock accumulated gains of roughly 11 to 12 percent — a period that encompasses both the Rheinmetall guidance cut and the resulting re-rating of TKMS as the designated replacement supplier. The shares remain well above their 52-week low of 56.75 euros, set in late November, though they still trail the October peak of 106.58 euros.
TKMS at a turning point? This analysis reveals what investors need to know now.
Not every piece of news from the company's operations is encouraging. At the Wismar shipyard, around 50 in-house firefighters face an uncertain future as the contract with current service provider Kötter Fire & Service expires on 1 October. The designated successor, VSU Brandschutz, requires a B1 qualification that many of the workers do not hold. The firefighters are pressing for a round-table discussion involving TKMS, Kötter, and VSU to resolve the impasse — a reminder that the defence boom does not unfold without friction at the local level.
For shareholders, the bigger picture is one of two long-duration growth engines: a multi-billion-euro submarine programme with Israel now entering its next phase, and a new frigate programme for the German Navy that has gained momentum thanks to a competitor's setback. Both stretch years into the future and look set to anchor TKMS's order book for the better part of a decade. The question now is whether the share price — still well off its highs — has fully caught up with the scale of what has been secured.
Ad
TKMS Stock: New Analysis - 6 August
Fresh TKMS information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
