As we noted in our earlier coverage of the planned separation, investors had anticipated the listing for months — but the debut exceeded expectations. According to Bloomberg, TKMS shares opened around €60 and quickly climbed above €80, giving the new company a market capitalization of roughly €5.5 billion.
How thyssenkrupp’s TKMS Spinoff Worked
Under the terms of the transaction, thyssenkrupp shareholders received one TKMS share for every twenty shares of the parent company they owned. The company retained a 51% majority stake in TKMS, distributing the remaining 49% to shareholders.
The listing on Frankfurt’s Prime Standard segment went live on October 20, 2025, following entry of the spinoff in the German commercial register last week. According to thyssenkrupp’s announcement, the transaction officially completed today.
TKMS: A Focused Defense Powerhouse
TKMS becomes one of Europe’s largest pure-play naval defense companies, specializing in submarines, frigates, and other advanced maritime systems. It enters public life with an order backlog of approximately €18.6 billion, giving investors immediate visibility into years of contracted work.
The company is positioning itself to take advantage of rising European defense budgets and demand for high-end naval capabilities. As a standalone entity, TKMS can now pursue partnerships and capital more freely than it could within the conglomerate structure of thyssenkrupp.
Still, the parent company remains closely tied: with a majority stake and shared historical liabilities, complete independence will take time. Ahead of the listing, Reuters reported that roughly €10 billion in guarantees were restructured to ensure the new company could stand on its own financially.
No TKMS ADR Yet for U.S. Investors
While TKMS shares now trade freely in Frankfurt, no sponsored ADR program has been announced for the new company. Parent thyssenkrupp AG maintains a Level I ADR program under the symbol TKAMY, but TKMS investors in the U.S. will need international brokerage access for now.
If TKMS chooses to establish an ADR, that would likely come several months after the debut, once trading volume and investor demand stabilize — a pattern we’ve seen with several European spinouts.
thyssenkrupp’s Ongoing Reinvention
For thyssenkrupp, the TKMS separation continues a broader evolution from sprawling industrial conglomerate to streamlined holding company. The group still owns its steel, materials, and automotive divisions — all potential candidates for future breakups if the market rewards today’s move.
Today’s strong debut suggests that the market does see value in the breakup strategy. TKMS now sails forward as a focused defense player with a hefty backlog, while thyssenkrupp trims down and unlocks capital for reinvestment or debt reduction.
But as always with spinoffs, execution will matter more than headlines. Naval shipbuilding is notoriously complex, long-cycle, and politically sensitive. A successful voyage for TKMS will depend on turning that backlog into profits — and proving that independence really does create value.
Disclosure: The author holds no position in any stock mentioned.