OTTAWA — Prime Minister Mark Carney on Monday named German defence manufacturer TKMS as the preferred bidder to supply the Royal Canadian Navy’s next fleet of submarines, though the company’s CEO says the real work “begins now.”

Part of the next phase of negotiations with TKMS will be nailing down details of the industrial benefits promised for Canada.

The government is planning to buy up to 12 submarines, and Ottawa aims to have a contract inked by the end of 2027.

Speaking to reporters in Ottawa on Monday, TKMS CEO Oliver Burkhard said the selection process was quick and that he hopes to see negotiations wrap up quickly as well, adding that doing so by the end of 2026 would be “outstanding.”

He said that as Canada is joining an existing partnership between Germany and Norway, the countries will have to find a way to work together on timelines for submarine delivery.

The prime minister talked up the TKMS 212CD submarine’s stealth and Arctic capabilities and emphasized that it can operate alongside NATO allies, ahead of this year’s annual NATO summit in Ankara, Turkey.

This report by The Canadian Press was first published July 7, 2026.