TKMS shares dropped 4.3% as free cash flow turned negative despite a EUR 20.6 billion order backlog. The submarine builder is facing investor skepticism ahead of a key roadshow in London starting June 22. The company needs to explain how its backlog will turn into reliable cash flow, especially after free cash flow swung to minus EUR 72 million in the first half of fiscal 2025/26. On the climate side, TKMS signed two memoranda of understanding for large-scale direct-air-capture projects in Alberta. One partner is Heirloom Carbon Technologies, which uses a limestone-based DAC process. The other is its own subsidiary thyssenkrupp Calvion for engineering integration. No investment figures were disclosed, and the DAC initiative is clearly linked to strengthening TKMS's bid for a Canadian submarine contract. It is signalling, not a near-term revenue driver. The stock is about 31% below its 52-week high. The next hard data point is the third-quarter update on August 12. For now, the London conference is the first real chance for management to address cash flow concerns and the role of carbon capture in their strategy.
