The stage is set for one of Europe’s most anticipated defence listings: KNDS, the maker of the Leopard 2 main battle tank, is pushing towards a dual flotation in Frankfurt and Paris with a target valuation of around €20bn. The backdrop is a surge in European defence spending — up 14% to $864bn in 2025 — and a structural shift in ownership that will give Germany and France equal voting power. The German government, via state development bank KfW, is acquiring a 40% stake in KNDS at the IPO price, a block worth between €8bn and €10bn based on current estimates. Berlin’s long-term plan is to reduce that holding to 30% within two to three years, but for now the move locks in parity with France, which already holds a similar interest. The shareholding structure, including the free float, will be detailed in the IPO prospectus.
While the headline ownership battle plays out, KNDS is grappling with a more operational challenge: how to turn a record order book into actual deliveries. The company ended 2025 with a backlog of €33.1bn, up from €23.5bn a year earlier, after new orders hit €13.5bn. Revenue climbed 15.9% year-on-year to €4.4bn, and EBIT improved to €661m, or 15% of sales, versus €500m (13.2%) in 2024. On a segment basis, Land Systems Germany contributed €2.5bn, Land Systems France €1.3bn, and the munitions division €612m. The order intake included more than 300 firm Leopard 2 A8 orders from Czech Republic, the Netherlands and Croatia, plus 222 Boxer RCT30 vehicles, 84 RCH155 howitzers and 200 additional Puma infantry fighting vehicles. With such volumes in the pipeline, capacity has become the defining issue for the equity story.
That makes a recent move by Hensoldt — a key supplier of optronics and sensor subsystems — directly relevant. Hensoldt has completed the acquisition of Dutch specialist Nedinsco, integrating the 140-employee firm into its optronics division. Nedinsco supplies driver vision systems and sensor-based components for major European armoured platforms including the Boxer, Leopard 2A8, Puma, Lynx and others from KNDS, Rheinmetall and BAE Systems. For KNDS investors, the transaction is not a new contract win, but it is a clear signal that the supply chain is consolidating as programmes ramp up. Hensoldt itself said the deal would secure critical supply lines, strengthen technology capabilities and support capacity expansion.
The capacity crunch is forcing KNDS to look beyond its own factories. Talks are underway for additional production space, with the Volkswagen works council signalling openness to using the Osnabrück plant for defence projects after civilian vehicle production ends there in 2027. KNDS remains the lead integrator for heavy armoured systems, but the company acknowledges that bringing in more suppliers and sites is a priority as demand outpaces existing capacity. Meanwhile, the development programme for the Leopard 3 will add further pressure on engineering and industrial resources. KNDS has said it plans further hiring and investment in manufacturing, assembly capacity and R&D in 2026.
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On the financial front, the company is preparing for its dual listing in Frankfurt and Paris, targeted for 2026 subject to market conditions. The IPO prospectus is expected to clarify how the free float will be allocated between the two bourses. The E6 agreement of 29 May 2026, which establishes unified supervision for stock exchanges and clearing houses across the six largest EU economies, is seen as a potential catalyst to attract institutional investors. KNDS has stated that internal work on the listing is progressing with “satisfactory maturity” and remains on schedule.
For investors, the key question is whether KNDS can translate its enormous order intake into scalable deliveries without margins being eroded by industrial bottlenecks. The Hensoldt-Nedinsco deal underscores a broader trend: the defence supply chain is tightening, and the companies that manage their supplier networks best will capture the most value. With Berlin locking in a 40% stake at the IPO price and Paris holding a matching position, the dual listing will also be a test of how governments balance strategic control with the demands of public-market investors. The IPO prospectus will provide the first clear picture of how those pieces fit together.
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KNDS Stock: New Analysis – 02 June
Fresh KNDS information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
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Berlin Stock: New Analysis – 02 June
Fresh Berlin information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
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