The German government is internally divided over how large a stake it should take in KNDS as the defence contractor accelerates preparations for a dual listing in Frankfurt and Paris. The defence ministry is pushing for a 40% holding to maintain strategic parity with France, while other ministries argue a 30% blocking minority under Dutch law would be sufficient. The outcome of this debate will shape the ownership structure of a group that, on the back of a record €33.1bn order book, is rapidly transforming itself from a traditional tank maker into a European industrial powerhouse.
The sheer scale of KNDS’s backlog – which reached an all-time high at the end of 2025 – is the engine behind both the IPO and the company’s urgent search for additional manufacturing capacity. New orders worth €13.5bn poured in last year, driving revenue up 15.9% to €4.4bn. The Land Systems Germany division alone grew 17.4% to €2.5bn. With roughly 11,000 employees already on the payroll, management is planning further hiring in 2026.
That order mountain is now forcing KNDS to look beyond its own plants. Chief executive Jean-Paul Alary confirmed active talks with automotive manufacturers, specifically targeting underutilised sites in Germany. The most advanced discussions involve the Mercedes-Benz plant in Ludwigsfelde, while a possible cooperation with the Volkswagen facility in Osnabrück is also under review. The idea is to convert existing industrial infrastructure rather than build from scratch, allowing the group to ramp up production of armoured vehicles and land systems more quickly. A decision on the Ludwigsfelde site is expected within weeks.
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The need for extra capacity is most visible in the company’s largest programmes: the Boxer wheeled armoured vehicle and the Leopard 2A8 main battle tank. Demand across Europe is surging as NATO allies rebuild arsenals, and KNDS is already eyeing a potential order from the Bundeswehr for up to 3,000 Boxer vehicles. At the same time, the company is clearing another path to the IPO by strengthening its balance sheet. On 19 May 2026, KNDS placed 5.8m shares of the transmission specialist RENK Group via an accelerated bookbuilding, raising around €262m and reducing its holding to roughly 10%. The proceeds will be used to shore up the capital structure ahead of the flotation.
The dual listing itself has cleared a key internal hurdle, and focus has shifted to finalising the prospectus. A timetable for the first trades in Frankfurt and Paris has not yet been set, but the group remains committed to going public before the end of 2026. Market observers note that the record order backlog provides a powerful valuation anchor for the offering.
Yet the state’s role remains a sticking point. The defence ministry’s desire for a 40% stake reflects a determination to keep strategic control on a par with France, which already holds an equivalent position. Other ministries favour a more hands-off approach, arguing that a 30% blocking minority is enough to prevent unwanted takeovers. Whatever the outcome, the IPO window is open, and KNDS intends to step through it this year.
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