Thyssenkrupp Marine Systems secures 11.6 billion euro frigate order

The German Bundestag's budget committee has approved the procurement of four additional MEKO A-200 DEU frigates from Thyssenkrupp Marine Systems (TKMS). This decision follows a previous approval in July for four identical vessels, bringing the total order to eight frigates designed for anti-submarine warfare in northern waters.

The total contract value for the eight units is estimated at approximately 11.6 billion euros, with the second batch of four ships valued at 5.3 billion euros. The first delivery is expected by the end of 2029. This program aims to address capability gaps in the German Navy, which has committed to providing NATO with four continuous anti-submarine warfare frigates starting in 2028.

Despite the scale of the order, which TKMS describes as the largest surface order in its history, the company's stock has declined by 11 percent over the last 30 days. Investors appear cautious regarding the timeline for when these massive maritime projects will translate into actual margins and earnings. Additionally, the procurement process faces scrutiny following a formal complaint from the Dutch shipyard Damen, which was previously bypassed for the F126 frigate development.