KNDS, Europe’s largest tank builder, is sprinting toward a dual listing in Frankfurt and Paris later this year, armed with a €33bn order book and a freshly signed-off audit that had threatened to derail the entire process. The company now expects a valuation of around €20bn, placing it among the most closely watched defence IPOs in Europe.
The compliance cloud that hung over the IPO for weeks has lifted. At issue was a 2013 contract with Qatar’s military for 24 PzH 2000 howitzers, 62 Leopard-2 tanks, and associated equipment and training systems, originally signed by Krauss-Maffei Wegmann, a predecessor of KNDS. Auditors at PwC had refused to sign off on the 2025 annual accounts until an independent investigation was completed. Without a certified audit, the IPO could not proceed. KNDS confirmed at the end of May that the probe had progressed enough for PwC to approve the figures, adding that no evidence of criminal misconduct by employees had been found.
The financial performance underpinning the listing is robust. Revenue climbed 15.9% to €4.4bn in 2025, with the German arm’s tank division up 17.4%, the French counterpart rising nearly 10%, and the ammunition business surging a quarter higher. Earnings before interest and tax jumped to €661m from €500m, pushing the EBIT margin from 13.2% to 15.0%. Management attributed the improvement to operational excellence and the execution of high-margin export contracts.
Order intake last year reached €13.5bn, swelling the backlog to €33.1bn from €23.5bn at the end of 2024. That pipeline is putting intense pressure on production capacity, and KNDS is looking well beyond traditional defence supply chains. Talks are under way with industries that specialise in large-series precision manufacturing, notably the automotive sector. With many European auto plants running below capacity, the company sees an opportunity to repurpose assembly lines for armoured vehicle production – a logical fit given the overlapping skills in complex logistics and heavy engineering.
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The IPO structure itself is unusual. Germany will buy a 40% stake in KNDS at the float price, matching France’s existing holding. Berlin’s outlay is expected to run between €6bn and €8bn. Both governments plan to reduce their stakes to around 30% over the following two to three years, though voting rights will remain equal regardless of the shareholding size. This dual-state anchor risks slowing decision-making if Paris and Berlin diverge, but proponents argue it provides stability in a sector dominated by national security interests.
In the run-up to the offering, KNDS has taken other preparatory steps. It cut its stake in Renk Group from 15.83% to roughly 10%, raising €269m in a deal that was fully subscribed almost immediately. The workforce has expanded 7.3% to around 11,000 employees, with further hiring and investment in manufacturing, assembly, and research planned. Leadership changes are also in place: former Airbus chief Tom Enders will chair the supervisory board, Jean-Paul Alary takes over as group CEO, and both the German and French subsidiaries have new managing directors.
The broader European defence landscape is shifting too. On 18 March 2026, Italy’s Leonardo acquired Iveco’s defence unit for €1.6bn, strengthening its land systems capabilities. That deal underscores the consolidation under way just as KNDS prepares to open its books to public investors.
With the audit hurdle cleared and record numbers on the table, KNDS now faces its next test: convincing the market that a tank maker co-owned by two powerful states can offer the same upside as a conventional listed company. The summer window for the IPO remains open. Whether the construction – limited free float, heavy government involvement, and a capacity crunch that demands creative solutions – will win over institutional investors is a question that only the roadshow will answer.
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