KNDS European IPO Set for Mid-July: Key Financials, Valuation & Shareholder Changes
Overview and Key Details of the KNDS IPO
FRANKFURT, June 24 (Reuters) - Franco-German tank maker KNDS rolled out its stock market listing plans on Wednesday, after months of talks over the balance of power within one of Europe's biggest defence firms.
Publication of its intention to float represents the official start of the KNDS initial public offering, with the first day of trading expected in the first half of July.
Here are key facts about KNDS, its IPO and shareholders:
Weapon Maker: Company Background and Financial Performance
Formation and Operations
- Forged from the 2015 merger of France's Nexter and Germany's Krauss-Maffei Wegmann, KNDS employs some 11,000 staff.
- The group makes the "Leopard 2" and "Leclerc" battle tanks, self-propelled artillery, medium tactical support and also operates an ammunition division.
Financial Highlights
- Its sales rose 16% in 2025 to €4.4 billion ($5.0 billion) and are expected to grow around 30% in 2026. Mid-term, sales are expected at €11 billion to €12 billion.
- Operating profit reached €661 million in 2025, making for a 15% margin. Excluding IPO-related costs, the margin is expected to fall to around 12% in 2026. Mid-term KNDS targets 14% to 15%.
- Its order backlog stands at a record €33.1 billion as of December 31, 2025.
IPO Plans and Shareholder Structure
Listing Details
- Headquartered in Amsterdam, KNDS is targeting a dual listing in Paris and Frankfurt, similar to European aircraft group Airbus.
- The IPO will be through the sale of existing share capital owned by KNDS shareholders, so no new shares are being issued.
Shareholder Changes
- KNDS is currently 50-50 owned by France and the KMW family owners, which are jointly selling about 20%.
- This will lower France's stake to 40%, while Germany has reached an agreement to buy the remaining 40% from the families through state-lender KfW to create a balance with Paris.
- The IPO is expected to value KNDS at around €15 billion, according to sources, with one source adding Berlin would pay a premium of more than 10% on the IPO price for its stake.
Balance of Power and Governance Post-IPO
Board Structure
- The KNDS board will be enlarged to 12 directors after the IPO, comprising the CEO, five independent non-executive directors and three representatives each for France and Germany, as long as they hold 30% or more of the voting rights.
Decision-Making Process
- Structural changes, strategic business decisions and key personnel decisions, including the choice of CEO, CFO and managing directors for KNDS's French and German divisions, require a simple majority that must include "affirmative votes of designated directors" from France and Germany.
Additional Information
($1 = 0.8807 euros)
(Reporting by Christoph Steitz; Editing by Alexander Smith)
