PARIS — The French-German defense manufacturer KNDS, known for producing the Leopard 2 main battle tank and the Caesar wheeled howitzer, is gearing up for a stock-market listing set for 2026. This move is intended to bolster the company’s growth initiatives. KNDS announced that its board of directors has decided to proceed with preparations for an initial public offering (IPO) next year, pending favorable market conditions.
The company asserts that going public will significantly enhance its long-term growth strategy by enabling more extensive access to capital markets. This influx of funds is vital for investment in industrial capabilities, technological advancements, and innovation. The announcement reflects a broader trend, as shares of publicly traded defense companies in Europe, including KNDS’s competitors, have seen substantial gains following Russia’s invasion of Ukraine in 2022. The Stoxx Europe Targeted Defense index has surged fourfold over the past three years, benefiting firms like Rheinmetall, which has leveraged its increased market capitalization for debt financing and merger and acquisition opportunities.
KNDS’s Chief Executive Officer, Jean-Paul Alary, emphasized the company’s commitment to building a more agile organizational structure, which aims to sustain investments in technology, capacity, and talent. He described the IPO project as a pivotal step in establishing KNDS as a unique European champion and a prominent player in global land defense.
In conjunction with this announcement, KNDS disclosed the appointment of Christian Schulz, the former chief financial officer of tank-transmission maker Renk, to the board of directors starting in 2026. Schulz, who led Renk’s stock listing in February 2024, is expected to bring valuable experience as the company navigates its upcoming IPO.
KNDS was established in 2015 as a result of the merger between France’s Nexter Systems and Germany’s Krauss-Maffei Wegmann, with each nation holding a 50% stake in the combined entity. Currently, the French and German segments of KNDS operate independently, each manufacturing and selling their distinct product lines.
Despite reporting a 17% revenue increase to €3.8 billion for 2024, KNDS’s performance has varied across its divisions. Rheinmetall experienced a more robust defense sales growth of 50% last year. The former Nexter segment, known for products like the Caesar howitzer and the Griffon armored personnel carrier, has lagged behind Krauss-Maffei Wegmann, which produces the Leopard 2 MBT and the PzH 2000 howitzer.
As of the end of 2024, KNDS France boasted an order book valued at €8.6 billion, an increase from €5 billion two years prior. Conversely, KNDS Deutschland’s backlog grew to €14.9 billion from €6 billion over the same timeframe, highlighting a significant disparity in order intake between the two segments according to annual reports filed with Germany’s lobby register.
The company plans to list its shares on both the Frankfurt and Paris exchanges, which are among the largest stock markets in the European Union by market capitalization. Chairman Tom Enders expressed optimism regarding the board’s decision to pursue an IPO, stating, “The time is right and the company is ready.”
