KNDS Charts Course for Frankfurt-Paris Flotation as Malaysian Artillery Order and US Tender Add Firepower

The Franco-German tank maker KNDS is on the brink of one of Europe’s largest defence-sector initial public offerings, with a dual listing in Frankfurt and Paris likely before the summer recess. The company has cleared a critical political hurdle: the families that own half of KNDS NV have agreed to sell a 40% stake to the German government, a transaction valued at between €6bn and €7bn based on an enterprise valuation of €15bn to €18bn. The move aligns Berlin’s stake with that of the French state, which already holds the other 50%. Under the IPO plan, the families will sell 10% and the French state another 10%, creating a free float of 20%.

The Bundestag is scheduled to vote on the share sale on 24 June. A positive outcome would clear the way for KNDS to announce its formal intention to float as early as this week, lifting the curtain on what is set to be one of the biggest defence listings Europe has seen.

KNDS was created in 2015 through the merger of Krauss-Maffei Wegmann and the French defence group Nexter. Its product line-up includes the Leopard 2 and Leclerc main battle tanks, armoured vehicles, and artillery systems used by more than 40 armed forces worldwide. The company’s financial performance has been robust: in 2025, revenue climbed nearly 16% to €4.4bn, while operating profit jumped from €500m to €661m. The order backlog swelled to €33.1bn — equivalent to 7.5 times annual sales, a ratio far above the typical one-to-two times seen in industrial companies. At the end of 2024, the backlog stood at €23.5bn.

The pipeline of new business continues to thicken. On 16 June, at the Eurosatory 2026 defence fair, KNDS signed a contract with Malaysia to supply 18 CAESAR 155mm self-propelled howitzers, partnering with local firm Advanced Defense System. Malaysia becomes the 15th operator of the CAESAR system — around 800 units have been ordered or delivered globally — and the third in the Indo-Pacific region after Indonesia and Thailand. The system’s “shoot-and-scoot” capability is particularly valued in modern artillery doctrine.

Should investors sell immediately? Or is it worth buying KNDS?

An even larger prize is at stake in the United States. The US Army is expected to award a contract by July for up to 500 self-propelled howitzers, with production possibly starting in 2028. KNDS has teamed up with Leonardo DRS for the bid, facing competition from South Korea’s Hanwha, Germany’s Rheinmetall, and Elbit America. The programme initially targets the replacement of towed M777 howitzers in the 81st Stryker Brigade, followed by US infantry units. A win would hand KNDS a decisive foothold in the world’s biggest defence market.

The company is also broadening its portfolio for the drone age. At the same exhibition, KNDS unveiled TARGAS, a fully integrated counter-drone system that combines detection and neutralisation in a single ecosystem. On 15 June it showed a containerised drone launch system built around a 20-foot ISO container, integrating Helsing HX-2 loitering drones for attack and Tytan TI-1 METIS interceptors for defence. The container is self-sufficient, with its own power, climate control and network connectivity. Additionally, KNDS introduced its first ground-launched loitering munition, the MTO-T, developed from battlefield lessons in Ukraine to protect soldiers during breach operations.

With Europe ramping up defence spending and demand for land systems surging, the timing of the IPO aligns with a powerful tailwind. Institutional investor interest is expected to be high, especially given the record order book and the strategic imperative that now underpins European defence procurement. If the Bundestag gives its blessing on 24 June, KNDS will be on the starting blocks for a flotation that could reshape the continent’s defence industrial landscape.