Gastops adds Anschütz agreement to Canadian submarine sustainment plans

German lawmakers on Thursday approved buying four more MEKO A-200 DEU frigates from TKMS, bringing the Navy's planned MEKO fleet to eight, Defense News reported.¹ The Bundestag budget committee had cleared the first four on July 8, alongside an option for the rest. The Defense Ministry said exercising that option will give the Navy a single eight-ship class intended chiefly for anti-submarine warfare. TKMS called the envisioned eight-ship run its largest-ever surface vessel contract.¹

Six F126 ships, Lürssen-ledaround €15.2B

All eight TKMS MEKO hulls€11.6B combined

Damen is seeking €4.7 billion in damages over Berlin's F126 termination, Der Spiegel reported.

Source: Reported by Defense News, June 24, 2026 (prices) and Oct. 8, 2026 (Damen claim, citing Der Spiegel)

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Berlin selected the MEKO after withdrawing from Damen Naval's contract for six F126 frigates, the ships initially intended to supply the Navy's future anti-submarine capability, according to Defense News.^1–2 Defense News reported in June that the military had explored handing the F126 general contractor role to Naval Vessels Lürssen, the shipbuilding group Rheinmetall now owns. Negotiations put that continuation at around €15.2 billion for six ships. The same report put all eight MEKO hulls at a combined €11.6 billion, subject to budget committee approval. The ministry said a contractor switch to Lürssen would have required Berlin to waive potential damage claims against Damen, a condition it was unwilling to accept.²

Damen is seeking €4.7 billion in damages, arguing that Berlin's termination was politically motivated and legally unfounded, Der Spiegel reported, according to Defense News. The ministry has attributed the withdrawal to "considerable performance problems" by Damen.¹

Kratos plans to increase turbojet production to address expected customer demand for jet engines for small cruise missiles and drones. Its 2027 forecast assumes about 1,500 engines sold, with most deliveries in the second half.¹

Planned productionUp to 3,000

Forecast salesApproximately 1,500

Kratos forecasts the significant majority of engine deliveries in the second half of 2027.

Source: Kratos third-quarter 2026 results. As of Nov. 5, 2026.

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Kratos's fiscal 2026 and 2027 cash flow estimates include working capital for materials, components and equipment to increase production of turbojet engines up to 3,000 engines produced in 2027.¹

Third-quarter 2026 revenue grew 35.7% year over year. Organic growth, excluding the current-year contribution from acquisitions, was 23.2%. Turbine Technologies posted 27.1% organic revenue growth.¹

Growth is already absorbing cash. Third-quarter 2026 operations used $5.2 million, which Kratos attributed primarily to receivables growth, alongside inventory increases tied to production ramps and development investments.¹

For full year 2026, Kratos forecasts free cash flow use of $110 million to $120 million. It forecasts capital expenditures of $100 million to $110 million. It expects investments in inventory, property, plant, equipment and facilities to continue at least throughout fiscal 2027.¹

Kratos raised $1,348.4 million from common stock issuance, net of issuance costs, in the first nine months of fiscal 2026. It ended the quarter with $1,404.3 million in cash and cash equivalents.¹

Separately, third-quarter Unmanned Systems revenue fell to $74.6 million from $87.2 million a year earlier. Kratos attributed the decline to a prior-year shipment of Valkyries to an international customer that generated $16.1 million.¹