TKMS AG & Co KGaA

Saab has secured an order worth approximately 8.7 billion Swedish kronor from shipbuilder TKMS Group to supply systems for four new German Navy frigates. The contract covers combat management systems, radar, and composite superstructures for the MEKO A-200 DEU class vessels, with deliveries scheduled from 2029 to 2032. Saab will provide its 9LV combat system, fire control, Sea Giraffe 4A and 1X radars, and passive sensors, with work carried out in Germany where TKMS is the prime contractor. The agreement also includes an option for additional ships.

Rheinmetall fell 14.81% intraday after Germany announced it is scrapping the F126 frigate program, abandoning plans for six large warships that would have been the biggest commissioned by the German navy since World War Two. Defense Minister Boris Pistorius informed industry figures and lawmakers of the decision, with Germany opting instead to purchase eight smaller Meko A-200 frigates. About 2 billion in F126 program costs are expected to be written off. TKMS AG & Co gained 8.38% intraday as the existing supplier of four Meko A-200 frigates at roughly 1 billion each. The cancellation is a significant setback for Rheinmetall, which had been set to take over as lead contractor on the 12.8 billion F126 program and had acquired shipbuilder Naval Yards Lurssen for 1.5 billion earlier this year as part of its push into naval defense.