This move is designed to unlock value and provide TKMS with access to capital markets, enabling it to pursue major contracts, technological advancements, and potential mergers, especially as European defense modernization accelerates.

TKMS, with around 9,000 employees across Germany and Brazil, specializes in building non-nuclear submarines, frigates, and corvettes, and is a global leader in non-nuclear submarine technology, serving clients like Germany, Norway, Singapore, and Egypt.

Germany's Bundestag approved the construction of four additional submarines, securing TKMS's production pipeline, while negotiations are ongoing for international contracts, including a bid to build 8-12 submarines for Canada.

TKMS is actively pursuing new contracts, with plans to fly CEO Burkhard to Canada to advance negotiations for the submarine deal, competing against other shipbuilders like South Korea.

The company aims to leverage its independence to innovate in missile, torpedo, autonomous systems, and AI technologies, while exploring diversification into sustainable maritime solutions.

Industry insiders see potential for further consolidation among European naval shipbuilders, with TKMS's leadership advocating for mergers to strengthen competitiveness in a rapidly evolving defense landscape.

Germany's largest naval shipbuilder, TKMS, experienced a successful stock market debut, with shares initially soaring from 60 euros to nearly 100 euros before settling around 89 euros, reflecting strong investor interest amid rising defense sector optimism.

The IPO was part of a strategic spin-off from Thyssenkrupp, which sold 49% of TKMS shares while retaining a 51% stake, allowing TKMS greater independence and flexibility for growth, acquisitions, and international expansion.

The company boasts a significant order backlog of €18.6 billion, ensuring production capacity into the early 2040s, driven by increased demand from the German Navy, NATO countries, and international clients.

European defense modernization, increased government spending, and policies promoting industrial sovereignty are positioning TKMS as a key player in a more competitive and autonomous European defense industry.

The IPO also provides strategic flexibility, with shares potentially used as currency for acquisitions and industry consolidation, while the German government maintains strategic control through a 'golden share'.

Despite setbacks like losing a recent Australian frigate contract, TKMS remains optimistic about its technological strengths and market position, especially amid increased defense spending and geopolitical tensions.