Shares of Thyssenkrupp Marine Systems (TKMS) surged on Wednesday after the German defense contractor announced a €1.2 billion contract with Norway’s Ministry of Defence.
The deal, reported by TKMS on Tuesday, covers the construction of five new naval vessels for the Norwegian Navy, with deliveries scheduled between 2026 and 2029. The contract includes options for additional vessels, which, if exercised, could extend the total value to €2 billion.
TKMS, a subsidiary of Thyssenkrupp, specializes in high-tech naval systems and has faced challenges in recent years amid shifting defense procurement priorities in Europe. The Norwegian order follows a period of restructuring within the company, which included the sale of its civil shipbuilding division in 2021.
The news triggered a sharp rise in TKMS shares, which were up more than 10% in early Frankfurt trading on Wednesday. Analysts attributed the surge to the contract’s size and the long-term visibility it provides for TKMS’s order book.
A spokesperson for TKMS confirmed the agreement but declined to comment on financial details beyond the publicly disclosed figures. The Norwegian Ministry of Defence did not immediately respond to requests for comment.
The contract aligns with Norway’s broader defense modernization efforts, including increased spending in response to regional security concerns. TKMS competes with other European defense firms such as Damen Shipyards and Naval Group for similar contracts in the Nordic region.
The order is expected to support TKMS’s backlog, which stood at €10.5 billion at the end of its last fiscal year. The company has not provided an updated outlook for 2024.
