Knds towards stock market listing in both Paris and Frankfurt
The Franco-German producer of the Leopard tank and Caesar howitzer is aiming for the stock market with the placement of 20% of the capital “in the coming weeks.” The stock exchange bell will ring in unison on both sides of the Rhine writes Les Echos. The publication of the intention to list officially marks the start of Knds’ initial public offering (IPO), with the first trading day scheduled for the first half of July.
The IPO announcement for the group active in the European land defense industry and at the center of the next-generation tank project Mgcs comes just days after the agreement between France and Germany on the group’s governance. At the end of the listing, 80% of the capital will remain equally divided between France and Germany. For the next ten years, neither shareholder will be able to fall below a 30% stake without the other’s consent.
Moreover, the operation will kick off one of the largest IPOs in Europe in recent years, testing investor interest in defense sector stocks, notes the Financial Times.
All the details.
WHAT KNDS IS
Founded about ten years ago from the merger of the German tank manufacturer Krauss-Maffei Wegmann (Kmw) and the French competitor Nexter, Knds supplies Leopard 2 tanks to the German armed forces and Caesar howitzers to the French army.
The company, which is a key supplier to Ukraine, is equally owned by the German Bode-Wegmann family and the Paris government.
THE FIGURES
As of December 31, 2025, the group has a record order backlog of 33.1 billion euros, an element that supports revenue visibility for the following years. During 2025, Knds recorded revenues of 4.4 billion euros, an operating profit (Ebit) of 661 million, with a margin of 15%, and a free cash flow of 980 million. Excluding IPO-related costs, the margin is expected to drop to about 12% in 2026. Knds’ medium-term target is 14-15%.
For 2026, Knds forecasts revenue growth of about 30% compared to the previous year, supported by demand across all business segments. The company claims to be well positioned to capitalize on increased military spending as the largest pan-European land systems group, highlights the Ft.
THE DUAL LISTING BETWEEN PARIS AND FRANKFURT
Yesterday, Knds announced its intention to proceed with an initial public offering and to apply for admission to listing and trading of its ordinary shares on the Paris and Frankfurt stock exchanges.
The IPO will consist of the sale of a stake of up to about 20% of the existing share capital by the current shareholders, GIAT Industries, a holding controlled by the French state, and Wegmann & Co GmbH, a private German holding company.
According to Bloomberg, the operation could value the company between 15 and 18 billion euros.
THE AGREEMENT FOR GERMAN STATE PARTICIPATION IN KNDS
Thus, the IPO will pave the way for a complex restructuring of the shareholding of one of the main European players in the defense sector, at a time when the region is engaged in an aggressive rearmament program, the British financial daily further highlights.
As already mentioned, the listing accompanies the agreement for the German state’s entry into the capital through KfW. Earlier this week, the families controlling 50% of Knds’ capital agreed to sell a 40% stake to the federal government of Germany.
Currently, Knds is 50% controlled by the French state and 50% by the KMW owning family, who will jointly sell about 20%. In this way, Paris will reduce the French stake to 40%, while Berlin has reached an agreement to purchase the remaining 40% from the families through the state-owned bank KfW.
The operation responds to the goal pursued by the government led by Friedrich Merz to align its presence in the group’s capital with the stake held by the French state.
FRANCE AND GERMANY TOWARDS JOINT GOVERNANCE IN KNDS
The resulting structure would allow the company to operate as a Franco-German joint venture.
Thus, Paris and Berlin will become, in the long term, equal shareholders, subject to the approval of the budget by the German parliament. “With the creation of this Franco-German framework, the two states take a decisive step to strengthen their shared sovereignty in land defense,” France and Germany said in a press release on Monday. Furthermore, governance rights will be balanced.
After the IPO, Knds’ board of directors will be expanded to 12 members, including the CEO, five independent non-executive directors, and three representatives each for France and Germany, provided they hold at least 30% of voting rights.
KNDS CEO’S STRATEGY
Commenting on the operation, CEO Jean-Paul Alary said: “Europe is entering a new era of defense and security. Armed forces are rapidly modernizing and rebuilding critical land defense capabilities. Knds is uniquely positioned to support this transition, with combat-proven platforms, industrial scale, and integrated mission solutions.”
The manager added: “As the European leader in the land defense sector, with roots in France and Germany, Knds combines the European dimension with strong national industrial bases. We start our next chapter from a position of strength, with high demand visibility, a record order backlog, and an industrial platform that we continue to expand across Europe. The planned IPO is the natural next step for Knds.”
