The IPO is expected to consist of the sale of up to approximately 20% of KNDS’ existing share capital by its current shareholders. Those shareholders are GIAT Industries S.A.S., a holding company owned by the French State, and Wegmann & Co GmbH, a private German holding company.
The planned transaction is expected to take the form of private placements to institutional investors in various jurisdictions. KNDS said no public offering is expected to take place in any jurisdiction.
The Federal Republic of Germany has reached an in-principle agreement with Wegmann to acquire 40% of KNDS’ ordinary share capital through Kreditanstalt für Wiederaufbau, subject to the IPO. KNDS said the investment is expected to be completed before admission and remains subject to approvals including a special federal mandate, regulatory clearance and customary internal approvals.
KNDS welcomed the prospect of the German investment, describing it as support for its strategy and ambition to help shape future European land systems. After the KfW investment and the IPO, GIAT and KfW are each expected to hold 40% of KNDS’ ordinary share capital, with up to 20% in free float.
Jean-Paul Alary, Chief Executive Officer of KNDS, said: “Europe is entering a new era of defense and security. Armed forces are modernizing at speed and rebuilding critical land defense capabilities.”
He added: “KNDS is uniquely positioned to support this shift, with combat-proven platforms, industrial scale and integrated mission solutions. As Europe’s leading pure-play land defense champion, rooted in France and Germany, KNDS combines European scale with strong national industrial foundations.”
“We are entering our next chapter from a position of strength, with high demand visibility, a record backlog and an industrial platform that we continue to expand across Europe. The planned IPO is a natural next step for KNDS.”
“It will increase our strategic agility and support continued investment in capacity, innovation and next-generation technologies. We also welcome the German government’s intention to become an anchor shareholder alongside the French State.”
“Germany has been a trusted customer and partner for decades. This new shareholding structure will support KNDS as it accelerates its next phase of growth.”
Tom Enders, Chairman of KNDS, said: “Europe needs stronger defense industries, deeper cooperation and greater technological sovereignty. KNDS has a central role to play.”
“With its Franco-German foundations, European industrial footprint and leading land defense capabilities, KNDS is well positioned to support Europe’s security for the long term. The planned IPO marks an important milestone.”
“It supports the Group’s growth ambitions and strengthens its ability to invest, innovate and deliver. Germany’s intention to invest alongside the French State is a strong signal of confidence in KNDS and its future.”
KNDS said its strategy is built on industrial ramp-up, operational excellence, next-generation innovation and expanded international presence. The group aims to optimise processes, expand production capacity, strengthen supply-chain resilience and invest in its workforce.
The company describes itself as a pan-European land defence champion with strong French and German home markets. It said it works with more than 40 armed forces and had an installed base of around 11,400 systems as of December 2025.
KNDS said it holds leading European positions in main battle tanks, self-propelled artillery and medium tactical support systems. Its portfolio spans combat systems, support systems, artillery, ammunition, training, simulation and lifecycle support services.
The group positions itself as a lead system integrator able to deliver system-of-systems capabilities across land defence missions. Its approach combines platforms, ammunition, sensors, software and command systems with maintenance, repair and after-sales support.
KNDS said it is investing in next-generation technologies through one of Europe’s largest land systems research and development budgets and a network of eight R&D hubs. Key areas include unmanned systems, battlefield digitalisation, counter-UAS systems and loitering munitions.
The group said it operates approximately 11,000 permanent employees across 32 production and service sites in 12 countries. Its “ONE KNDS” model is intended to improve execution, throughput, quality and cost efficiency across its industrial footprint.
Between 2023 and 2025, KNDS invested more than €700 million in capital expenditure and increased its total number of employees by 15%. Over the same period, it said aggregate revenue rose 35% and production capacity doubled for selected products.
KNDS reported €4.4 billion of revenue in 2025, up 16% year on year, with €661 million of EBIT and a 15% EBIT margin. The company also reported €980 million of free cash flow and a record €33.1 billion order backlog as of 31 December 2025.
The group said its backlog provides strong long-term revenue visibility and supports its medium-term ambition of €11 billion to €12 billion in annual revenue. It also reported a 3.1x book-to-bill ratio in 2025, reflecting strong demand and conversion into long-term contracts.
For 2026, KNDS is targeting revenue growth of around 30% compared with 2025. Excluding non-recurring IPO-related costs, it expects an EBIT margin of around 12% and free cash flow of more than €250 million.
The company expects property, plant and equipment capital expenditure to reach around €750 million in 2026, mainly driven by expansion at KNDS Land Systems Germany. It said the 2026 margin decline from 2025 reflects the initial scaling-up of large domestic programmes and the non-recurrence of certain highly profitable contracts already delivered.
In the medium term, KNDS is targeting an EBIT margin of 14% to 15%. It also expects cumulative free cash flow of €2.5 billion to €3.0 billion, corresponding to average cash conversion of 45% to 50%.
Subject to applicable restrictions, KNDS expects to adopt a dividend policy targeting a payout ratio of around 40% of annual net income. The policy is expected to apply from 2027 based on results for the 2026 fiscal year.
Following the KfW investment and IPO, GIAT and KfW are expected to remain long-term shareholders. A 10-year lock-up period is expected to restrict either shareholder from reducing its holding below 30% without prior approval from the other party.
KNDS also expects to introduce a loyalty share plan granting double voting rights to shares held and registered continuously for two years. The special voting shares would not be listed and would carry no economic or dividend rights.
The company said its board is expected to be enlarged to 12 members after the IPO. The board would include the chief executive, five independent non-executive directors and three representatives nominated by each of GIAT and KfW while they meet relevant voting rights thresholds.
The proposed governance structure includes different approval thresholds for day-to-day matters, fundamental decisions and specific matters requiring independent director approval. KNDS said the framework is intended to provide appropriate oversight while giving management the autonomy to execute the group’s strategy.
The French State already holds a golden share over assets of KNDS France linked to French weapon systems and ammunition businesses. After the KfW investment, this arrangement is expected to be mirrored by a materially symmetrical security agreement with the Federal Republic of Germany for KNDS assets in Germany.
BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe and Société Générale are acting as joint global coordinators and bookrunners for the contemplated offering. UBS Investment Bank is acting as senior joint bookrunner, while BNP Paribas, Citigroup, Commerzbank, Crédit Agricole CIB, Natixis and UniCredit are acting as joint bookrunners, with Lazard serving as independent financial adviser to KNDS.
