ThyssenKrupp AG stock climbs again on European defense surge
German submarine manufacturer Thyssenkrupp AG (TKAMY) is on a tear again, marking its second major surge in just over a week. The stock jumped 12.3% to $7.46 by Tuesday’s close, following a 20% spike on February 18.
The latest move came after Friedrich Merz, the frontrunner to become Germany’s next chancellor, called for a stronger European defense buildup, according to Reuters.
Similarly, last week’s jump was fueled by Thyssenkrupp AG’s CEO Miguel Lopez confirming plans to spin off its submarine manufacturing arm, Marine Systems, in an IPO.
Other European defense stocks also gained on Tuesday: Saab AB2 (SAAB–B) rose 3.45%, Leonardo SpA (LDO) gained 2.48%, BAE Systems (BA) climbed 2.84%, and Maersk (MAERSK-B) added 3.06%.
A remarkable turnaroud
ThyssenKrupp AG had been in decline since November 2023, hitting an all-time low in November 2024.
Since Trump’s election win, however, the company, which builds everything from automotive parts to aerospace components—and chemicals to energy—has recouped most of its last year’s losses.
Analysts say a weakening transatlantic relationship could further benefit the German shipbuilder, which has 300 years of naval construction expertise.
Still, even with the recent rally, Thyssenkrupp AG remains well below its $14.23 peak from March 2021. The company has a market cap of $4.6 billion but reported a $34 million loss in its fiscal first quarter, ending December 31, 2024.
Marine Systems IPO in focus
ThyssenKrupp AG’s Marine Systems division produces four classes of submarines alongside surface warships such as frigates and corvettes. It also designs its own weapons systems.
The shipbuilding defense unit generated $5.7 billion in revenue in Q1—more than any other segment of the company, according to its Feb 13 earnings report.
“We are working hard on the spin-off to position the business optimally to process the large order backlog and respond to continued high customer interest in a changing security environment,” CEO Miguel Lopez said in the company’s February 13 report.
That news, later confirmed by Bloomberg, hit European markets by February 17—U.S. President’s Day—when American exchanges were closed. The next day, U.S. investors piled into Thyssenkrupp AG.
European defense boom
A wave of nationalism in defense and manufacturing on both sides of the Atlantic has opened doors for European firms that previously faced stiff competition from U.S. contractors.
Swedish defense giant Saab—maker of the Gripen fighter jet, tanks, and warships—hit an all-time high Tuesday, surging 50.69% over the past year. Italy’s Leonardo, which produces the Eurofighter Typhoon and helicopters, is up 83.88% year-over-year.
The same is true for UK-based BAE Systems, a key player in the F-35 fighter jet program, and Danish transport and logistics giant Maersk—which caters to the Department of Defense (DOD), including all branches of the Armed Forces.