KNDS Nears Dual Frankfurt-Paris Listing After Audit All-Clear and Record €33bn Backlog

Defense group KNDS clears governance overhang, posts strong 2025 results with €4.4B revenue and 15% EBIT margin, and targets a €15-20B dual IPO in Frankfurt and Paris by mid-2026.

The path to a public listing for KNDS has sharpened into focus after the defence group resolved a long-running compliance probe tied to a 2013 transaction with Qatar’s armed forces. With the internal investigation now advanced enough to sign off on audited financial statements, the dual IPO in Frankfurt and Paris is moving toward a formal prospectus — a milestone that had been hanging over the process.

The timing of the disclosure is deliberate. As the company prepares to hit the capital markets in mid-2026, it needs clean books, expanding margins and a growth narrative that investors can trust. The Qatar review, which found no evidence of criminal wrongdoing by current or former employees, clears the governance overhang and puts the listing back on schedule.

Profitability outpaces top-line growth

KNDS reported operating income of €661 million for fiscal 2025, up from €500 million a year earlier. The margin improvement was equally striking: EBIT margin reached 15.0 percent, compared with 13.2 percent in the prior year. Revenue climbed 15.9 percent to €4.4 billion, driven by strong performance across all divisions.

Land Systems Germany generated €2.5 billion in sales, a 17.4 percent increase, while Land Systems France contributed €1.3 billion, up 9.6 percent. The ammunition business — a segment that has gained strategic importance — surged 24.7 percent to €612 million. The company attributed the margin expansion to operational efficiencies and a shift toward higher-value export contracts.

Headcount rose 7.3 percent to around 11,000 employees, reflecting the broader build-out of capacity ahead of expected demand.

Order book balloons on Leopard 2A8 demand

The order backlog more than doubled, reaching €33.1 billion compared with €23.5 billion a year earlier. Order intake stood at €13.5 billion. A key driver was the Leopard 2A8 main battle tank, for which firm orders now exceed 300 units. Customers include the Netherlands, the Czech Republic and Croatia, with additional European nations expected to join.

The sheer volume of contracts is forcing KNDS to rethink production capacity. Chief executive Jean-Paul Alary said the group is evaluating “very significant” expansion plans, including talks with external industrial partners. Among the options under discussion is the conversion of idle automotive plants — a pragmatic approach that could accelerate the assembly of military vehicles using existing industrial infrastructure.

IPO details and valuation

KNDS is pressing ahead with a dual listing on the Frankfurt and Paris stock exchanges, with Lazard Inc. appointed as financial adviser. Market estimates peg the company’s valuation at between €15 billion and €20 billion, which would make it one of the largest defence-sector IPOs in Europe. The target window for the launch is June or July 2026, subject to market conditions.

To strengthen its capital structure ahead of the float, KNDS sold a 5.8 percent stake in the Renk Group earlier this year, raising approximately €262 million. The proceeds are expected to support the research and development needed for next-generation systems, including the Main Ground Combat System.

Governance reinforced

The supervisory board, chaired by former Airbus chief Tom Enders, has endorsed the listing plan. Christian Schulz, former CFO of the Renk Group, has joined the executive board and will lead the audit committee. His experience in both IPO processes and the defence industry is seen as a valuable addition as KNDS navigates the final stretch to the public markets.

With the Qatar investigation closed, financial disclosures on track and a record order book providing long-term visibility, the defence contractor now has the three pillars — clean audit, rising profitability and organic growth — that institutional investors demand from a listing candidate. The next formal step is the publication of the IPO prospectus, expected in the coming months.