KNDS Strengthens Defense Portfolio with Acquisition of Mobility Specialist

KNDS finalizes acquisition of Texelis Defense, creating KNDS Mobility to boost military vehicle propulsion. The group, with a €23.5B backlog, also advances plans for a 2026 IPO targeting a €20B valuation.

The Franco-German defense group KNDS has finalized a strategic acquisition, taking full ownership of Texelis Defense. The newly integrated entity will operate under the name KNDS Mobility, marking a significant enhancement of KNDS's capabilities in a critical technological domain: advanced propulsion systems for military vehicles.

Strategic Rationale and Market Position

This move is designed to bolster KNDS's technological sovereignty and industrial capacity. Nicolas Groult, the head of KNDS France, emphasized that bringing specialized mobility expertise in-house is crucial for the group's independence and its ability to scale production to meet demand. KNDS Mobility contributes deep knowledge in drivetrains and mobility solutions for a wide range of military platforms, from 4x4 and 8x8 wheeled vehicles to tracked armored units.

The timing of this consolidation aligns with a period of remarkable growth for KNDS. The company reported a record order intake of €11.2 billion for the 2024 fiscal year. Its current order backlog stands at approximately €23.5 billion, fueled by major international defense programs. Key contracts driving this performance include the Leopard 2 A8 main battle tank, the RCH 155 artillery system for Ukraine, and the Caesar howitzer units. To support this expanded workload, KNDS's global workforce has grown to over 11,000 employees.

Parallel Push Toward a Public Listing

Alongside its operational expansion, KNDS is actively advancing preparations for an anticipated initial public offering (IPO) in 2026. The group is planning a dual listing on the Frankfurt and Paris stock exchanges, with investment bank Lazard advising on the process. The targeted market valuation for the IPO is around €20 billion. Proceeds from the share sale are earmarked for investments in new production capacities and next-generation technologies.

Interest in the future publicly traded entity extends beyond the private market. The German federal government is reportedly considering acquiring a blocking minority stake. Such a move would secure long-term state influence over the production of critical defense systems like the Leopard 2 and the Boxer armored vehicle. KNDS is currently owned by the French state holding company GIAT Industries and the German family-owned Wegmann group.

The company has also made a key board-level appointment to steer its IPO ambitions. Since January 2026, Christian Schulz, the former Chief Financial Officer of the RENK Group, has served on KNDS's supervisory board. His extensive experience with industrial public listings is viewed as a clear signal of the seriousness of the group's going-public plans.