KNDS Pushes Into Unmanned Communications as IPO Nears With State Backing

European defense group KNDS launches Phorio radio for unmanned platforms, targeting IPO in Frankfurt and Paris with €3.8B revenue and €23.5B backlog.

The European defense group KNDS is making a strategic push beyond its traditional tank-building business, unveiling a new radio system for unmanned platforms just months ahead of a planned dual listing in Frankfurt and Paris. The Phorio communications solution, launched at the DSA 2026 exhibition in Kuala Lumpur, is already drawing orders from the French defense ministry.

The system is engineered to maintain stable links between ground control stations and an array of unmanned assets — including ground vehicles, drones and loitering munitions — even in environments saturated with electronic jamming. Phorio employs frequency-hopping technology to counter interference, while its software-defined architecture allows upgrades to be installed remotely without swapping out hardware, extending the system's operational life and cutting retrofit costs.

KNDS has been building out its robotics portfolio for more than a decade, having delivered over 1,000 unmanned ground vehicles to 40 countries. Customers in the Asia-Pacific region include Australia, Indonesia, Malaysia, Singapore and Thailand. Its best-selling product is the Nerva micro-UGV, and the company also supplies retrofit kits for third-party platforms — a business model the robotics division has pursued since its founding in 2013. A company spokesperson said KNDS expects UGV demand to accelerate sharply, driven by applications in base security, logistics and human-machine teaming.

The Phorio launch comes at a pivotal moment. KNDS is preparing for an initial public offering in June or July, with listings in both Frankfurt and Paris. Bank of America, Deutsche Bank, Goldman Sachs and Société Générale have been mandated as global coordinators. Proceeds from the IPO are earmarked to double production capacity.

The company's financials provide a strong foundation for the listing. KNDS generated revenue of €3.8 billion in 2024 and carries an order backlog of €23.5 billion. It employs more than 11,000 people. At its Munich-Allach facility, the company recently opened a new production line for the Boxer wheeled armored vehicle, currently turning out ten drive modules per month. Output of the Boxer system is expected to sextuple by the end of the decade.

Meanwhile, the German government is moving to secure strategic influence in the defense champion. State-owned development bank KfW is reportedly evaluating the acquisition of a minority stake and has mandated JPMorgan to advise on the process. The joint venture is currently split equally between the French state and the German Wegmann family, which plans to reduce its holding in the IPO. A KfW entry would create a German counterweight to the French government's existing stake.

Analysts value KNDS at roughly €25 billion ahead of the IPO. The company is being advised by Lazard on preparations. Existing shareholders may receive a pre-IPO dividend of between €1 billion and €2 billion, according to reports.

For potential investors, Phorio signals that KNDS is positioning itself as a technology group with growth ambitions in drones and battlefield communications — segments that are gaining priority in European procurement programs. The final structural questions now center on the size of the KfW stake and the formal mandate of banks for the dual listing. These negotiations will define the future balance of power within the European defense heavyweight before the order books open.