German Frigate Programmes: F123 Modernisation, F126 to MEKO A-200, F127
A dated ledger tracking Germany's F126-to-MEKO-A-200 pivot, the F127 Aegis frigate and F123 modernisation, contract by contract.
This page is a maintained ledger of Germany's surface-combatant programmes — F123, F126/F128 and F127 — updated as each contract, budget vote or export clearance lands.
Why this page exists
Germany is rebuilding its surface fleet across three programmes at once, and the middle one collapsed and was rebuilt inside a single summer: the F126 anti-submarine frigate was cancelled on 24 June 2026 after its cost-to-complete estimate reached roughly €18bn, and a replacement — up to eight TKMS MEKO A-200 DEU frigates designated F128 — was submitted at €6.63bn, approved with conditions at ~€6.3bn, signed and given its first supplier contract within a month. Tracking that sequence, alongside the F127 air-defence frigate's separate Aegis/SPY-6 export clearance and now-contested cost baseline, and the F123's ongoing life-extension work, means following BMVg statements, Bundestag budget-committee sessions, and company releases from Rheinmetall, TKMS and Saab that each cover one piece of three fast-moving programmes.
The page holds the dated sequence in one place so a reader does not have to reconstruct it from separate releases: what was approved, what was only proposed, what is under contract, and what is still pending a Bundestag vote. For anyone pricing European naval demand, judging TKMS's and Rheinmetall's order books, or reading Germany's air-defence posture at sea, the distinction between a submitted price, an approved price and a signed contract is the whole story.
State of play
F123 Brandenburg-class: extending four hulls to 2035
Germany's four Brandenburg-class F123 frigates, in service since 1996, are absorbing the near-term sustainment budget while the newer classes work through procurement. On 11 June 2026 the Bundestag's budget committee cleared a Saab-integrated anti-submarine-warfare and torpedo-detection change order touching the ships' sensors and combat-management system — a change order, not a stand-alone sonar buy. Separately, on 30 July 2026 Rheinmetall's Neue Jadewerft yard in Wilhelmshaven took a mid-three-hundred-million-euro contract to modernise the lead ship BAYERN: replacing the combat-management system outright, refreshing the radar suite, upgrading anti-submarine capability and overhauling propulsion, running to 2029 and intended to hold the class in service to at least 2035. BAYERN is already alongside at Wilhelmshaven with major components removed. The class's three sister ships have no modernisation order announced, so whether the BAYERN contract scales to the full class is still open — F123 is the sustainment floor under two new-build programmes still working through contracts of their own.
The F126 collapse and the F128 rebuild
On 24 June 2026 the defence ministry cancelled the six-ship F126 anti-submarine frigate programme — the largest surface-combatant project in postwar German naval history — after Damen Schelde Naval Shipbuilding notified Berlin it could not deliver on schedule or budget, and after the ministry judged a Rheinmetall-led rescue would still cost roughly €18bn against an original €10bn estimate, with the first ship slipping to 2032. Roughly €2–3.5bn was already sunk. In its place the Navy chose up to eight TKMS MEKO A-200 DEU frigates, an existing design about a third the F126's size: four firm (submitted to parliament at €6.63bn, approved and contracted at roughly €6.3bn), four optioned by end-2026 at roughly €5.3bn, first delivery targeted for 2029.
The replacement, designated F128, moved quickly from submission to contract. BMVg's 2 July submission priced four ships at €6.63bn — about 70 per cent above earlier estimates, mostly the cost of halving the batch and adding strike-length launch cells — with the entire F126 contractor team replaced: TKMS as prime, Saab on the combat system, Atlas Elektronik on sonar, Kongsberg on the Naval Strike Missile. The Bundestag budget committee approved the buy on 8 July at roughly €6.3bn — a shade under the submitted figure — attaching conditions — quarterly reporting, cost control, a look at bringing former F126 subcontractors back in, and no slip past the December 2029 delivery date. TKMS and BAAINBw signed the four-ship contract on 14 July (reported figure €6.3bn, ESUT); Saab's roughly €790m combat-system order followed on 16 July; on 12 August TKMS signalled it would open the second four-ship batch to those returning suppliers.
Rheinmetall's naval bet and its unwind
Rheinmetall's move into warship-building ran through the March 2026 close of its Naval Vessels Lürssen acquisition — four yards (Peene-Werft, Blohm+Voss, Norderwerft, Neue Jadewerft) and about 2,100 staff — meant to convert a components supplier into a prime capable of delivering complete armed ships. F126 was the anchor: a non-binding roughly €12bn takeover bid tabled on 6 May 2026 was overtaken by the June cancellation, and the loss cost the company about €300m of 2026 revenue guidance, cut to €13.7–14.2bn at the August half-year results against a backlog that had still reached €80.5bn. Rheinmetall kept the F123 BAYERN sustainment contract and a non-binding bid for German Naval Yards Kiel — the yard tied to F127 construction — placed on 8 May and still unresolved after TKMS withdrew its own rival GNYK bid on 21 July. On 3 August the company unveiled the GMF 140, a 6,000-tonne Aegis-armed frigate design pitched first at a North American competition, with no customer, yard or schedule named.
F127: the Aegis air-defence frigate without a budget vote
The F127, replacing the F124 Sachsen class, is the programme with the largest number and the thinnest parliamentary paper trail. On 17 April 2026 the US State Department cleared a Foreign Military Sale worth up to $11.9bn for eight shipsets of Aegis Combat System MK 6 MOD X and AN/SPY-6(V)1 radar — no earlier export clearance of that radar variant to a non-US customer is recorded; the Mk 41 vertical-launch system grew from 64 to 96 cells per hull under Baseline VIII, and $3.5bn of the package covers 173 SM-6 Block I and 577 SM-2 Block IIIC missiles. Entry into service is scheduled from the mid-2030s. What has not followed is a Bundestag budget-committee vote: Rheinmetall chief executive Armin Papperger said in May that the ministry's capacity meant no F127 procurement decision was likely in 2026, and the yard question — German Naval Yards Kiel, contested between Rheinmetall and TKMS — remains open. The programme's price is now disputed in public: on 27 August Der Spiegel reported, citing ministry sources, an estimate above €40bn for eight ships against the roughly €26bn carried; the ministry said it held no firm offer, and TKMS, prime alongside Rheinmetall's naval arm, said the next day it could not confirm the figure, called it "not comprehensible", offered smaller frigates with a reduced capability profile should the requirement change, and put first delivery at 2034 given timely contracting. The 2027 defence estimate passed its first reading on 9 September with no F127 submission in sight; second and third readings follow in November.
Adjacent threads: ammunition, combat systems and the Dutch Aegis question
Two smaller moves round out the picture. Diehl Defence and BAE Systems signed a memorandum on 3 August to pair Diehl's 127mm Vulcano-family guided round with BAE's Mk 45 Mod 4 naval gun — fielded across a far larger allied fleet than any German hull — and to examine fitting IRIS-T into BAE's maritime launchers; no contract, schedule or qualification programme yet exists. Separately, the Netherlands sent Washington a Letter of Request in January 2026 for an Aegis variant to equip its own F126 follow-on tranche, with a US response received in April; Germany's cancellation of the F126 programme itself has left the design's export future — and therefore the Dutch decision — unresolved; neither government has published a decision since. On the night of 1–2 September the F125 frigate SACHSEN-ANHALT fired at least two IAI LORA ballistic missiles from its flight deck in the North Atlantic, an OPEX innovation trial; the navy says procurement preparations will be advanced, but no requirement, quantity or parliamentary submission exists, and the weapon sits in no current frigate design's armament list. What the F125s did get is a medium-range air-defence missile: on 23 September the budget committee approved a maritime adaptation of IRIS-T SLM for all four ships, the ministry citing the current air-defence threat, alongside the Seebataillon's multi-purpose combat boats; the ministry gave no value, and no F127 or F128 item was on the same agenda. The K130 corvette fleet, unrelated to frigates but sharing the same yards, reached ten hulls with the 29 April christening of Lübeck, the final Batch-2 ship.
Key numbers
| Metric | Value | As of | Source |
|---|---|---|---|
| F126 cost-to-complete estimate at cancellation | ~€18bn (vs ~€10bn original estimate) | 24 Jun 2026 | Bundesministerium der Verteidigung, via Reuters/Financial Times |
| F126 sunk cost | ~€2–3.5bn | 24 Jun 2026 | BMVg |
| F128 firm batch (four ships) | ~€6.3bn approved 8 July; contract signed 14 July (submission figure €6.63bn) | 14 Jul 2026 | Bundestag Haushaltsausschuss; ESUT on the signing |
| F128 optional second batch (four more ships) | ~€5.3bn, exercisable by end-2026 | 2 Jul 2026 | BMVg parliamentary submission |
| F128 per-hull cost increase over earlier estimates | ~70 per cent | 2 Jul 2026 | Hartpunkt breakdown of the BMVg submission |
| Saab F128 combat-system order | SEK 8.7bn (~€790m) | 16 Jul 2026 | Saab |
| F127 FMS package total | up to $11.9bn, eight shipsets | 17 Apr 2026 | US Department of State (DSCA) |
| F127 vertical-launch cells per hull | 96 cells (Mk 41 Baseline VIII, up from 64) | 17 Apr 2026 | DSCA |
| F127 missile buy within the FMS | 173 SM-6 Block I + 577 SM-2 Block IIIC (~$3.5bn) | 17 Apr 2026 | DSCA |
| F127 ship count | grown from six to eight | 17 Apr 2026 | DSCA / Bundestag 2025 force-structure decisions |
| Rheinmetall FY26 sales guidance | cut €300m to €13.7–14.2bn, attributed to the F126 cancellation | 6 Aug 2026 | Rheinmetall half-year results |
| Rheinmetall Naval Systems H1 2026 backlog | €6.3bn (on €334m of H1 sales) | 6 Aug 2026 | Rheinmetall half-year results |
| F127 programme estimate, reported | more than €40bn for eight ships (vs ~€26bn carried); BMVg: no firm offer; TKMS: figure "not comprehensible" | 28 Aug 2026 | Der Spiegel report of 27 Aug citing ministry sources; TKMS statement 28 Aug via hartpunkt; unconfirmed by BMVg |
| F127 first delivery | 2034, conditional on timely contracting (TKMS) | 28 Aug 2026 | TKMS statement via hartpunkt |
| F125 air-defence upgrade | IRIS-T SLM maritime adaptation for all four ships, budget-committee approved 23 Sep 2026; no ministry value (reported ~€40m, two launchers per ship, 16 rounds each, prototype 2027) | 24 Sep 2026 | BMVg release 24 Sep (registered signal-153); configuration and value figures are hartpunkt 8 Sep observer estimates, reported not confirmed |
| Seebataillon combat boats | 15 Watercat M18 AMC (10 firm + 5 options), ~€175m, deliveries 2029–31 — reported; ministry gives no supplier or value | 24 Sep 2026 | hartpunkt 24 Sep (https://www.hartpunkt.de/bundeswehr-darf-15-mehrzweckkampfboote-des-typs-watercat-m18-amc-bestellen/ — not yet in registry) and Sicherheit und Verteidigung 25 Sep; approval per BMVg 23 Sep, hartpunkt's boat piece dates the budget-committee step 24 Sep |
The ledger
Newest first, one dated development per entry; where a Großwald piece covers it, the entry links to it.
The Bundestag budget committee approves all twelve Bundeswehr 25-million submissions on its 23–24 September agenda, the ministry confirming the list on 24 September; the two naval items pass as tabled — a maritime adaptation of IRIS-T SLM for the four F125 frigates, whose self-defence capabilities the ministry says must be extended because of the current air-defence threat, and multi-purpose combat boats for the Seebataillon. The ministry names no supplier or value; trade reporting puts the boats at 15 Marine Alutech Watercat M18 AMC built with the Gebrüder Friedrich yard in Kiel, ten firm and five on option, about €175m, deliveries 2029–31. No F127 or F128 item was on the agenda.
The Bundestag holds the first reading of the 2027 defence estimate (Einzelplan 14: €109.7bn core plus €29.9bn special fund, €139.6bn in all, with €60.2bn for procurement); the Greens' budget speaker Sebastian Schäfer says the F126 was stopped "far too late" and has become "a monument in steel", the AfD's Jan Nolte puts the F126 loss at €2.3bn. Second and third readings follow in November; F127 has no submission before the committee.
The F125 frigate SACHSEN-ANHALT fires at least two IAI LORA ballistic missiles from its flight deck in the North Atlantic between Ireland and Iceland on the night of 1–2 September, an OPEX innovation trial run with the Bundeswehr's Erding centre; a navy spokesman says preparations to procure the weapon are to be advanced, with no requirement, quantity or parliamentary submission yet on record.
Der Spiegel reports, citing defence-ministry sources, that the estimate for the eight F127 air-defence frigates has risen to more than €40bn against the roughly €26bn the programme has carried; the ministry says it holds no firm offer and has the programme under examination. TKMS, prime in a consortium with Rheinmetall's naval arm, says it cannot confirm the figure and calls it "not comprehensible", offers smaller frigates with a reduced capability profile should the requirement change, and puts first delivery at 2034 given timely contracting.
TKMS signals openness to bringing former F126 subcontractors, including Rheinmetall, into the F128 second four-ship batch, following the industrial-participation condition Bundestag attached on 8 July.
Rheinmetall's H1 2026 results show 39 per cent sales growth to €5.2bn and an €80.5bn backlog, but full-year guidance is cut by €300m to €13.7–14.2bn, attributed to the cancelled F126; Naval Systems contributes €334m of sales on a €6.3bn backlog.
Rheinmetall unveils the GMF 140, a 140-metre, ~6,000-tonne Aegis-armed frigate design with 64 strike-length VLS cells, pitched first at a North American procurement campaign with no customer named.
Diehl Defence and BAE Systems sign a memorandum to integrate Diehl's 127mm Vulcano-family guided round with BAE's Mk 45 Mod 4 naval gun, and to examine IRIS-T integration into BAE maritime launchers.
Rheinmetall's Neue Jadewerft yard takes a mid-three-hundred-million-euro contract to modernise the F123 frigate BAYERN — combat-management-system replacement, radar upgrade, anti-submarine improvements and propulsion overhaul — running to 2029, intended to hold the class to at least 2035.
TKMS withdraws its non-binding bid to acquire German Naval Yards Kiel (GNYK), the yard tied to F127 construction capacity; Rheinmetall's rival non-binding bid, submitted 8 May, remains pending with no resolution announced.
Saab signs a SEK 8.7bn (~€790m) contract with TKMS to equip four F128 MEKO A-200 DEU frigates with the 9LV combat system, Sea Giraffe 4A/1X radars and composite superstructure sections; deliveries run 2029–2032.
BAAINBw and TKMS sign the contract for the first four F128 MEKO A-200 DEU frigates at a reported €6.3bn (ESUT, 16 August), six days after the budget-committee approval and two days before Saab's combat-system order.
The Bundestag budget committee approves the four-ship F128 MEKO A-200 DEU buy (~€6.3bn released), attaching conditions on quarterly reporting, cost control, reconsidering former F126 subcontractors, and holding the December 2029 delivery date.
BMVg submits a parliamentary request for four F128 MEKO A-200 DEU frigates at ~€6.63bn — about 70 per cent above earlier estimates — with an option for four more (~€5.3bn) by year-end; TKMS is prime, and the entire F126 contractor team is absent from the new line-up.
Germany cancels the six-ship F126 programme after a cost-to-complete estimate of ~€18bn (against an original ~€10bn), and orders up to eight TKMS MEKO A-200 DEU frigates instead — four firm (later submitted at €6.63bn, approved and contracted at ~€6.3bn), four optioned by end-2026 (~€5.3bn) — with first delivery targeted for 2029; Rheinmetall shares fall ~18–20 per cent.
Germany's F126 cancellation puts the Damen design's export future — and the Dutch F126 follow-on tranche, for which the Netherlands requested an Aegis variant in January — in doubt; no Dutch decision has been published since.
The Bundestag budget committee approves a Saab-integrated anti-submarine-warfare and torpedo-detection change order for the F123 frigates' sensors and combat-management system, alongside unrelated Bundeswehr procurement items.
Rheinmetall submits a non-binding offer to acquire German Naval Yards Kiel; chief executive Armin Papperger says the ministry's capacity means no F127 procurement decision is likely in 2026.
Rheinmetall Naval Systems tables a non-binding ~€12bn offer to take over F126 programme management from Damen (total programme to ~€14bn including ~€2bn already spent); a parallel preliminary TKMS MEKO A-200 contract for four ships at ~€1bn each is held in reserve as Berlin's price check, with an eight-ship extension option requested.
The Netherlands' Letter of Request for a US Aegis Combat System variant to equip its F126 follow-on tranche receives a US response, with the decision tied to the Tweede Kamer and the 30 May SAFE first-disbursement window.
The K130 Batch-2 corvette Lübeck is christened at Blohm+Voss, closing the Batch-2 build cycle and bringing the Class 130 corvette fleet to ten hulls — the first event at the yards since Rheinmetall's acquisition of NVL closed in March.
The US State Department approves an FMS of up to $11.9bn for eight F127 shipsets of Aegis Combat System MK 6 MOD X and AN/SPY-6(V)1 radar — no earlier export clearance of that radar to a non-US customer is recorded — with Mk 41 VLS expanded from 64 to 96 cells per ship under Baseline VIII.
Rheinmetall closes its acquisition of Naval Vessels Lürssen, bringing four shipyards and about 2,100 staff into a new Naval Systems division and converting the company into a warship prime contractor.
The contrarian read
The prevailing reading treats the F126 collapse as an industrial failure that TKMS's readiness fixed and Rheinmetall's overreach exposed. A colder reading is that Berlin's own decisions did as much to drive cost as any contractor's: the ministry chose to buy only half the eight-ship batch it could have ordered outright, and that single choice generates most of the 70 per cent per-hull cost increase on the F128 — a premium for phasing rather than for anyone's failure. The replacement package was assembled, approved by the budget committee and signed within three weeks of cancellation, with conditions — quarterly reporting, cost control, no schedule slip — of a kind F126 never carried, which suggests the ministry itself located the earlier failure in oversight as much as in shipbuilding capacity. And none of that urgency has reached F127: an Aegis programme whose US-sourced component alone is cleared at up to $11.9bn — before any hull, yard or German content is priced — has sat without a budget-committee submission for over a year, while the yard meant to build it changes hands in an unresolved contest between the same two primes — and the first hull-and-all figure the public has seen, a reported €40bn-plus, is one the ministry will not confirm and the prime says it cannot recognise. A programme whose price is disputed before it has an offer is not being held back by shipyard capacity.
What to watch
F128 second batch
Berlin's option for four more MEKO A-200 DEU frigates (~€5.3bn) is exercisable through end-2026; watch whether it is taken up, and whether the returning ex-F126 subcontractors named in the 8 July conditions actually appear on the contract.
GNYK ownership
TKMS withdrew its bid for German Naval Yards Kiel on 21 July 2026; Rheinmetall's rival non-binding offer from 8 May is still open. Since GNYK builds F127 hulls, whoever wins shapes who delivers Germany's air-defence frigate.
F127 budget vote
The $11.9bn Aegis/SPY-6 export clearance dates to April 2026; no budget-committee submission has followed, and the late-August cost dispute — a reported >€40bn against ~€26bn, no firm offer on the ministry's side — makes the shape of any submission the question, not just its date. TKMS's smaller-ship offer and its 2034 first-delivery condition are the two variables to watch in the autumn submissions and the November second and third readings of the 2027 estimate.
F128 delivery date
The Bundestag's 8 July conditions require the December 2029 first-delivery date to hold; the F126 it replaces slipped from 2028 to a projected 2032 before cancellation, so 2029 is the new programme's first credibility test.
GMF 140 customer
Rheinmetall's GMF 140 design carries no named competition, yard or customer at its 3 August unveiling; a named North American procurement process is the test of whether the design advances beyond a concept.
LORA on frigates
After the 1–2 September LORA firing from SACHSEN-ANHALT, the navy says procurement preparations will be advanced; the observable is a stated requirement, a 25-million submission or a budget line — none exists yet, and the missile appears in no current frigate design's armament list.
F125 IRIS-T SLM and Watercat contracts
Approval makes the two naval contracts signable; no signature date has been reported for either. Observables: a BAAINBw or Diehl contract notice for the F125 launcher adaptation (reported two per ship, 16 rounds each, prototype 2027, sea firing possibly early 2027) and a Marine Alutech/Gebrüder Friedrich signature for the 15 boats; the ministry has published no value for either.
Related Großwald positions
Scope: Germany's surface-combatant programmes — F123 life extension, the F126 cancellation and F128 replacement, F127 — with budget votes, contracts, export clearances and the adjacent industrial decisions (TKMS, Rheinmetall, German Naval Yards Kiel). Costs are as submitted to or approved by the Bundestag unless otherwise stated.
External sources named in text: Bundesministerium der Verteidigung (BMVg); Bundesamt für Ausrüstung, Informationstechnik und Nutzung der Bundeswehr (BAAINBw); Deutscher Bundestag / Haushaltsausschuss; Rheinmetall AG; ThyssenKrupp Marine Systems (TKMS); Damen Schelde Naval Shipbuilding; Saab; US Department of State (DSCA); Netherlands Ministry of Defence / Tweede Kamer; Diehl Defence; BAE Systems; Hartpunkt; Reuters; Financial Times; Handelsblatt; Europäische Sicherheit & Technik (ESUT).
