No naval battle for control of German Naval Yards Kiel (Gnyk), the German shipyard controlled by the French group CMN Naval.
On one side there is Tkms, Thyssenkrupp’s naval division specialized in submarines, on the other the German defense giant Rheinmetall, already active in the sector’s expansion after acquiring the Nvl shipyard.
On the occasion of the presentation of the half-year results, Tkms CEO Oliver Burkhard ruled out a bidding war for Gnyk, reports Reuters. Tkms acknowledged the competing offer submitted by Rheinmetall for the acquisition of the Gnyk shipyard, CEO Burkhard stated, adding that although the ammunition manufacturer probably had greater financial resources, this was not the only decisive factor. “Money alone does not build ships,” Oliver Burkhard told journalists after presenting the second quarter results, adding that experience was equally important and that in this area Tkms had an advantage over competitors.
The game around German Naval Yards takes place in a context where European military shipbuilding companies are exploring alliances and partnerships, while industrial consolidation linked to increased defense spending in Europe accelerates.
All the details.
WHAT IS GERMAN NAVAL YARDS
As Reuters also recalls, German Naval Yards, a shipyard with about 350 employees, has become the focus of interest of the main European naval defense groups. In addition to Tkms and Rheinmetall, according to some sources, the British group Inocea is also interested.
Last week the German defense company led by Armin Papperger confirmed it had submitted an offer for Gnyk and had already started due diligence.
Rheinmetall’s interest is part of a broader strategy of consolidation in the European defense sector. The group, the region’s leading ammunition manufacturer, had already moved into the naval sector with the acquisition of Nvl and had in the past also considered an offer for Tkms before the separation from the Thyssenkrupp parent company.
TKMS SLOWS DOWN ON A BIDDING WAR FOR GNYK
For its part, Tkms – which builds submarines and surface ships for the German navy and other customers worldwide – ruled out the possibility of an unlimited competition to acquire German Naval Yards Kiel.
According to Burkhard, there is a limit to the offer Tkms is willing to make, although the manager did not specify exact figures. The group’s top executive also emphasized that, while acknowledging Rheinmetall’s greater financial strength, Tkms can count on “superior experience and cooperation.”
TKMS RESULTS
Finally, Tkms closed the first half of the 2025/2026 fiscal year, ending in March, with results slightly above analysts’ expectations.
Revenue increased by 10%, reaching 1.17 billion euros, while operating profit grew by about 14%, reaching 60 million euros. Analysts had forecast average revenues of 1.1 billion and an operating profit of 59 million. Net profit instead decreased by 41%, to 27 million euros, due to increased costs related to research and development and commercial activities.
Growth was mainly supported by divisions dedicated to submarines and sonar technology, while the order backlog reached a new record high of 20.6 billion euros at the end of March.
“Tkms is on the right track and continues to grow. We are able to meet our current order backlog as planned thanks to our shipyards. Looking ahead, however, we are already exploring potential international partnerships,” CEO Burkhard highlighted.
The company also confirmed its annual and medium-term targets. According to mwb research analysts, “TKMS remains well positioned for the coming decades in a volatile defense sector, where we observe increasing risks for its competitors.” Despite the positive results, Tkms shares fell 5.7% in Frankfurt yesterday, in line with the broader decline of European defense stocks.
