KNDS order backlog jumps as IPO plans continue
Strong Growth and IPO Developments at KNDS
By Maria Rugamer
May 26 (Reuters) - Franco-German defence group KNDS on Tuesday said its order book and 2025 revenue had grown strongly, supporting plans for a dual stock market listing in Frankfurt and Paris later this year.
Financial Performance
Revenue rose to 4.4 billion euros ($5.10 billion) in 2025 from a year earlier, while its order backlog climbed to 33.1 billion euros from 23.5 billion euros at the end of 2024, the maker of Leopard 2 tanks and Caesar howitzers said.
Strategic Role and Leadership Commentary
"As an architect of integrated land defense solutions, KNDS plays a central role in designing and orchestrating system-of-systems capabilities," said KNDS chief Jean-Paul Alary.
IPO Preparations and Ownership Structure
Listing Plans and State Ownership
The listing is set to be one of Europe's most closely watched defence offerings in years as Germany and France negotiate future state ownership. A German government official said last week Berlin aimed to buy a 40% stake, matching France's planned holding, to retain influence over strategically important defence technology.
Centrality of Ownership Talks
Those ownership talks remain central to the listing plan.
Valuation and Stake Reductions
Berlin is expected to spend 6 billion to 8 billion euros for the stake, based on a valuation estimate of 15 billion to 20 billion euros, according to financial sources.
KNDS Chairman Thomas Enders has said both governments should gradually cut their holdings after the initial public offering to make the company more attractive to investors.
Under current plans, Germany and France would each reduce their holdings to around 30% within two to three years.
Market Context and Outlook
KNDS' growth reflects stronger European demand for heavy weapons as governments raise defence spending after recent conflicts and NATO members rebuild stockpiles.
Challenges for Defence IPOs
However, the listing comes during a tougher period for defence initial public offerings, with shares in Czech ammunition maker CSG down more than 50% since its January debut and Rheinmetall also retreating from recent highs.
($1 = 0.8605 euros)
(Reporting by Maria Rugamer; Editing by Matt Scuffham)
