Shares in the newly spun-off naval unit of German industrial giant Thyssenkrupp jumped on Monday in a debut on the Frankfurt Stock Exchange, highlighting the buzz around European defense firms as the continent rearms amid a growing Russian threat.
Submarine- and warship-maker TKMS, previously known as Thyssenkrupp Marine Systems, saw its share price climbing from 60 euros ($70) at opening to near 100 euros, underscoring investor optimism over the defense sector as European militaries ramp up orders. The priced eased back to 89 euros around midday.
As part of the spin-off, Thyssenkrupp shareholders automatically received one TKMS share for every 20 of their Thyssenkrupp shares. The parent company retained 51% of the shares.
Combined, Thyssenkrupp shareholders have seen an estimated 14% gain in their portfolios. At it’s peak on Monday, TKMS was valued at 6.2 billion euros, while Thyssenkrupp’s market capitalization temporarily fell below 6 billion euros.
TKMS employs around 9,000 people and has an order backlog of 18.6 billion euros.
The listing of TKMS is the German conglomerate’s latest move to simplify its structure and take advantage of growing demand for defense assets.
Headquartered in the northern German port city of Kiel on the Baltic Sea, TKMS, which traces its roots back 187 years, is the world’s largest builder of non-nuclear submarines and frigates. Its Atlas Electronics division also produces underwater technology, including mine-sweeping systems.
A large gantry crane stands at the shipyard of Thyssenkrupp Marine Systems (TKMS), Thyssenkrupp’s warship division that will be spun-off and listed separately later this year, on the day of the brand launch in Kiel, Germany, June 4, 2025. (Reuters Photo)
Analysts had expected the spin-off could value the company at 2.3 billion euros to 2.7 billion euros, a Reuters report said.
Defense spending bouncing
Defense budgets have swelled across Europe, with the region spooked by Russia’s full-scale invasion of Ukraine as well as U.S. President Donald Trump urging Europe to take more responsibility for its security.
“This not only marks a corporate milestone but is also a strong signal for maritime safety and stability,” TKMS CEO Oliver Burkhard said, as trading got underway in Germany’s financial capital.
“This is also important for the future of Europe,” he said, adding that the region wanted to defend its “free, democratic” way of life.
As a standalone company focusing on the defense sector, TKMS and its shareholders are benefitting from the investor interest that has driven the share prices of firms like munitions-maker Rheinmetall and tank gearbox-maker Renk to record highs.
TKMS finance chief Paul Glaser told Agence France-Presse (AFP) that the listing would help TKMS access cash to finance the company’s growth and fill orders.
A man walks past the logo of ThyssenKrupp’s naval unit ThyssenKrupp Marine Systems (TKMS) prior to the company’s initial public offer (IPO) at the stock exchange in Frankfurt, Germany, Oct. 20, 2025. (AFP Photo)
“We’re seeing strong demand for all our products,” he said. “With our own shares we now have our own currency, something that we can use to operate.”
“Before we were part of a conglomerate, now we can really focus on defense,” he added.
“We need more flexibility … in light of rising geopolitical tensions,” Burkhard said just before shares began trading.
Burkhard said he would head to Canada later on Monday alongside German Defense Minister Boris Pistorius, hoping to secure a major submarine order it has recently been short-listed for.
The company is also lined up to participate in the German navy’s F127 frigate program and negotiating a submarine contract with the Indian government.
“With defense budgets in core markets expected to more than double, TKMS is well positioned for growth,” said a note by mwb research. The group’s mid-term growth target looked understated, mwb said, given NATO and European Union procurement budgets were projected to grow by more than 170% by 2030.
Since Russia’s invasion of Ukraine in 2022, Europe has been rushing to build up militaries that have in many cases faced years of neglect.
Germany’s total defense spending is projected to reach 162 billion euros in 2029, more than triple its levels before the war in Ukraine.
Thyssenkrupp, a sprawling conglomerate with businesses in struggling industries such as auto parts and steel, in May said that it would gradually give its businesses more independence to make them more flexible and boost their value.
Thyssenkrupp is also examining an offer by India’s Jindal Steel International for its steel business which is coming under intense pressure from Asian competition.
Speaking at the debut in Frankfurt, Miguel Lopez, CEO of parent Thyssenkrupp, told Reuters Thyssenkrupp was in intensive discussions with Jindal Steel International over the sale of the group’s steel division.
“We’ll see what outcome we’ll have over the next few months,” he said.
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