TKMS, Germany's largest shipyard, gains autonomy
In a significant move, Thyssenkrupp AG's marine division, TKMS, is set to become an independent company following the approval of shareholders on August 8, 2025. The new company, TKMS AG & Co. KGaA, is expected to be listed on the Frankfurt Stock Exchange later this year.
Thyssenkrupp will retain a 51% majority stake in the newly independent TKMS, while the remaining 49% will be distributed to Thyssenkrupp shareholders, granting them one TKMS share for every 20 Thyssenkrupp shares held. This move aims to provide TKMS with entrepreneurial freedom and independent access to capital markets, enabling it to finance growth, invest in technology, and pursue partnerships or acquisitions more flexibly.
Independence for Faster Innovation and Growth
With independence, TKMS will have direct access to the capital market for driving investments in new technologies and markets. TKMS CEO, Oliver Burkhard, has stated that this independence will be crucial for the company's future growth and innovation.
The spin-off is part of Thyssenkrupp’s strategic realignment and capitalizes on increasing demand in the European defense sector, particularly for naval shipbuilding. TKMS operates shipyard locations in Kiel and Wismar, as well as further sites in Hamburg, Bremen, and Emden.
A Publicly Traded Maritime Defense Company
The spin-off marks Germany's largest naval shipbuilder's transition into an independent, publicly traded maritime defense company. The security agreement between TKMS and the federal government is planned to be concluded by the end of September.
The attractiveness for investors increases due to the clearly defined business models without the disadvantages of a conglomerate. The IPO of TKMS will make the company's value visible externally. The largest single shareholder of Thyssenkrupp AG, the Krupp Foundation with a stake of 21 percent, is to receive a seat on the TKMS supervisory board.
A Strong Order Backlog
TKMS has received orders for submarines from Germany, Norway, Israel, and Singapore. The company has been awarded the construction of the new German research ship 'Polarstern 2' with an order volume of around €1.2 billion. TKMS currently has a significant order backlog, valued at over €18 billion. As a world leader in conventionally powered submarines, TKMS also builds frigates and corvettes, employing around 8,200 people.
The spin-off of TKMS has been met with predominantly positive sentiments from shareholders. However, the planned management structure has been criticized for having a supervisory board predominantly staffed by the parent company, with six out of ten members determined by Thyssenkrupp. ThyssenKrupp AG is open to a more in-depth dialogue if there is interest from the federal government.
[1] Thyssenkrupp AG Announces Spin-off of Marine Division TKMS
[2] TKMS AG & Co. KGaA: The New Independent Marine Division of Thyssenkrupp
[3] Germany's Naval Shipbuilder TKMS Goes Public
- Other industry players may find the independence of TKMS and its access to the capital market an advantage for financing growth and innovation in the maritime defense sector.
- With the spin-off, TKMS is now a publicly traded company, opening up opportunities for business partnerships and acquisitions across the finance and defense industries.
