thyssenkrupp (AO) | Buy | Germany set to award TKMS up to EUR12bn naval contract

Research evidence excerpt

thyssenkrupp (AO) | Buy | Germany set to award TKMS up to EUR12bn naval contract

News comment

Release date: 03 July 2026

Boris Bourdet, CFA

Equity Research Analyst

+33 1 70 81 57 25

bbourdet@keplercheuvreux.com

Buythyssenkrupp

Germany | Metals & mining Beta Profile: MCap: EUR7.1bn

Target Price: EUR15.00 Bloomberg: TKA GR Reuters: TKAG.DE

Current Price: EUR11.37 Free float 79%

Up/downside: 31.9% Avg. daily volume (EURm) 60.4

YTD abs performance 22.6% Market data: 02 July 2026

52-week high/low (EUR) 13.20/7.19

Germany set to award TKMS up to EUR12bn naval contract

Key points:

According to Bloomberg, German lawmakers are expected to approve a contract worth up to EUR12bn next week for the

procurement of eight TKMS warships.

Under the proposal, the German Ministry of Defence would initially order four MEKO A-200 anti-submarine warfare frigates for

EUR6.6bn, followed by an additional four vessels worth EUR5.3bn.

If confirmed, the contract would likely trigger customer prepayments over the coming years, supporting cash generation and

helping to alleviate concerns around free cash flow. In addition, the recent appreciation in TKMS's share price would provide

further support for our SOTP valuation of thyssenkrupp.

German lawmakers expected to approve EUR12bn order for MEKO A-200 frigates

The decision follows the government's cancellation of the troubled F126 programme, previously awarded to Dutch shipbuilder

Damen Shipyards Group and subsequently transferred to Rheinmetall's naval unit NVL, after repeated delays.

TKMS noted that preparatory work on the MEKO A-200 programme began in February. According to Bloomberg, deliveries of the

first four vessels are scheduled for December 2029, September 2030, June 2031 and March 2032.