German submarine manufacturer Thyssenkrupp Marine Systems (TKMS) announced on Wednesday that its order backlog has reached a new record of $22 billion. The company also raised its sales forecast for 2026, citing a significant increase in demand for warships driven by heightened geopolitical tensions.

Similar to many of its peers, TKMS has benefited as investor interest in defense stocks grows, influenced by the war in Ukraine and U.S. pressure on Europe to enhance its military capabilities.

This growth momentum was also a key factor behind the decision by its former parent company, Thyssenkrupp, to spin off and list TKMS last year. The separation allows TKMS to compete more effectively in global submarine tender projects valued in the billions of euros, with notable opportunities in India and Canada.

Oliver Burkhard, CEO of TKMS, stated: "Given the current geopolitical situation, customer demand for advanced maritime defense capabilities remains high." He added, "As Europe's only fully integrated maritime systems supplier, we are ideally positioned to meet the industry's multi-faceted needs."

The company now expects sales growth of 2% to 5% in 2026, compared to a previous forecast ranging from a 1% decline to a 2% increase. This upward revision exceeds the average growth estimate of 2.9% derived from a survey of banks and brokerages by London Stock Exchange Group (LSEG).

Financial results for the first quarter of the fiscal year, covering October to December 2025, showed a 1% decline in sales to €545 million ($649 million). Adjusted operating profit remained largely stable at €26 million. The company reaffirmed its target of achieving an operating profit margin of over 6% for the current year.