KNDS Holds to IPO Timetable as Record €33bn Backlog Fuels Dual-Listing Plans

European defence giant KNDS proceeds with dual listing plans, reports €4.4B revenue and €33.1B order backlog, while Berlin and Paris negotiate stake adjustments.

The European defence giant KNDS is pressing ahead with its planned dual listing in Frankfurt and Paris, shrugging off calls from Berlin for a delay. Chief executive Jean-Paul Alary confirmed on Friday that preparations for the initial public offering are running on schedule, even as the German government sought more time to negotiate a direct state stake in the company.

The numbers underpinning the move are striking. Revenue hit €4.4 billion in 2025, while the order backlog swelled from €23.5 billion to €33.1 billion. Analysts peg the enterprise value at a minimum of €20 billion, depending on market conditions and investor appetite. That backlog — built on surging demand for the Leopard-2 tank, the Caesar howitzer and up to 3,000 Boxer wheeled armoured vehicles for the Bundeswehr — is putting production capacity under pressure and making access to fresh capital a priority.

Yet the ownership structure remains the most delicate puzzle. KNDS is currently split 50-50 between the French state and the German families behind Krauss-Maffei Wegmann. Under the plan taking shape, Berlin will initially acquire 40% of the group before trimming that stake to around 30% over two to three years. France, which holds 50% today, will simultaneously reduce its holding to 40%, restoring a balance between the two capitals. Alary has resisted any postponement, insisting the internal IPO process is on track despite the political back-and-forth.

Elsewhere in Europe’s defence landscape, the Italian theatre is also shifting. The Agnelli family has been in talks to sell Iveco, with the defence vehicles unit Iveco Defence Vehicles spun off separately. KNDS was considered a potential buyer alongside Leonardo, Rheinmetall and the Czechoslovak Group, but Leonardo has since completed its acquisition of the unit for €1.6 billion. Any such transaction would have fallen under Italy’s “Golden Power” regime, which allows Rome to block or impose conditions on strategic takeovers.

The dual listing is being coordinated by global investment banks, though no firm date has been set. The speed of the offering will ultimately depend on how quickly Berlin and Paris can finalise their respective stakes. Meanwhile, the record order book and the need to fund capacity expansion give little reason for KNDS to slow down.