KNDS Pushes Ahead With €20 Billion IPO Amid Rising Defence Demand
German-French defence group KNDS is moving forward with plans for one of Europe's largest initial public offerings (IPOs) in recent years. The company, which reported €3.8 billion in revenue last year, aims for a €20 billion market valuation by 2026. This comes as global demand for military equipment rises and export procedures in Germany temporarily ease.
The IPO follows successful listings by other defence firms, including Vincorion and CSG, signalling strong investor interest in the sector.
KNDS has confirmed its intention to list in 2026, regardless of delays in the Main Ground Combat System (MGCS) programme. Originally expected by 2040, the project's timeline has now shifted to 2045. Despite this, the company's IPO remains on track, with officials stressing its independence from the MGCS.
Recent progress on the MGCS includes a new development contract for a hybrid propulsion system. Led by Rolls-Royce (providing over 1,400 kW), with ZF as a subcontractor, the focus is on European manufacturing, efficiency, and compact design. However, reports suggest Germany may be preparing contingency plans to exit the programme, though no official decision has been made.
To meet rising demand, KNDS plans to double or even triple its production capacity. The company currently holds a €23.5 billion order backlog, underlining its strong market position. Germany's recent simplification of arms export rules has also helped shorten delivery times, further boosting KNDS's operational efficiency.
The defence IPO market is currently buoyant, with recent listings like Vincorion and CSG performing well. This favourable climate strengthens KNDS's confidence in achieving its ambitious valuation target.
KNDS is set to proceed with its 2026 IPO, targeting a €20 billion valuation. The company's growth strategy includes expanding production to meet global orders, while its financial health remains robust with a €23.5 billion backlog. Despite MGCS delays and speculation about Germany's involvement, the IPO's progress remains unaffected by the programme's challenges.
