KNDS Strengthens European Defense Role Through Acquisition and Alliance

KNDS forms EuroPULS artillery JV with Elbit and acquires Texelis Defense, boosting vertical integration and its position as a major European defense contractor.

The Franco-German defense conglomerate KNDS is rapidly advancing its strategic position across Europe. In a swift sequence of moves, the company has executed both a targeted acquisition and formed a pivotal joint venture, underscoring its ambition to become a leading systems integrator for continental defense programs.

A Strategic Joint Venture in Artillery Systems

Setting the stage for its recent activity, KNDS partnered with Elbit Systems Land on March 26, 2026, to establish EuroPULS GmbH. Headquartered in Kassel, this equally owned joint venture marries Elbit’s battle-proven PULS (Precise & Universal Launching System) rocket artillery technology with KNDS’s established European market presence and fire control systems.

This collaboration has already yielded tangible results. The German government, under a trilateral agreement involving the Netherlands and Israel, has placed an initial order for five first-series launchers. Delivery and qualification for these systems are scheduled for 2027, aiming to equip NATO forces with advanced, long-range artillery capabilities.

Vertical Integration with the Texelis Defense Acquisition

Shortly after the joint venture announcement, on April 2, 2026, KNDS France finalized the purchase of Texelis Defense, a specialist in military vehicle mobility systems. The acquired entity now operates under the name KNDS Mobility, maintaining its operational bases in Limoges and Roanne.

This acquisition is a clear move toward vertical integration. By bringing critical drivetrain technology in-house, KNDS gains direct control over a key component for wheeled vehicles (from 4x4 to 8x8 configurations) and tracked platforms. The strategic goal is to streamline supply chains and bolster in-house capacity to meet the rising production demands of major European defense initiatives.

Financial Foundation and Market Positioning

These strategic expansions are built upon a robust financial base. For the fiscal year 2024, KNDS reported a record order backlog of approximately €23.5 billion, marking a significant increase from previous years. Revenue also saw healthy growth, climbing from €3.3 billion to €3.8 billion. To support this expanding workload, the company has added 5,000 new employees since 2023.

By simultaneously pursuing deeper vertical integration through acquisitions and forging strategic partnerships via joint ventures, KNDS is solidifying its role as a prime contractor for large-scale European defense projects. This aggressive positioning comes as the company prepares for a potential public listing, demonstrating its readiness to operate at a new scale within the global defense industry.