In a significant move for the European defense industry, KNDS, the joint French-German tank manufacturer, is gearing up for a stock market debut in Paris and Frankfurt. This decision marks a transformative step as current shareholders plan to divest approximately 20% of their holdings to institutional investors, with Germany poised to acquire a 40% stake in the firm.
The ownership of KNDS is currently split between two entities: France’s state-owned Giat Industries and Germany’s family-run Wegmann & Co. These stakeholders have agreed to sell 20% of the company, as confirmed by a statement from KNDS. Concurrently, Germany’s government has negotiated with Wegmann to purchase a substantial 40% share, while France will retain its portion through Giat.
Earlier this week, France and Germany reached an agreement to equalize their stakes in KNDS, facilitating the company’s path to a public listing announced in December. This arrangement also provides an exit strategy for the German heirs who collectively own half the company, capitalizing on the recent surge in defense stock values post-Ukraine invasion.
“The planned IPO is a natural next step for KNDS,” stated CEO Jean-Paul Alary, emphasizing the strategic benefits such as increased agility and sustained investment in innovations and future technologies.
As global defense spending rises, Europe has witnessed a series of defense-related IPOs, such as Germany’s Renk and France’s Exosens in 2024, followed by TKMS in 2025 and Czechoslovak Group in early 2026. The STOXX Europe Targeted Defence Index notably reflects this trend, having increased sixfold over the past five years.
Looking ahead, KNDS aims for a 30% revenue boost by 2026, building on its 2025 sales of €4.4 billion and operating profit of €661 million. The company also reported an impressive order backlog of €33.1 billion as of December.
Germany plans to acquire its KNDS stake through the Kreditanstalt für Wiederaufbau, with the transaction set to conclude before the public listing. This investment is contingent on specific conditions, including a federal mandate and parliamentary approval, as detailed by KNDS.
“Germany’s intention to invest alongside the French State is a strong signal of confidence in KNDS and its future,” remarked KNDS Chairman Tom Enders.
The upcoming share sale will primarily involve private placements to institutional investors, with no new shares being issued, according to Alary at the Eurosatory defense show. Long-term commitments from Giat and Kreditanstalt für Wiederaufbau include a 10-year lockup period, ensuring stability in the company’s shareholder structure.
Additionally, KNDS plans to implement a loyalty share scheme granting double voting rights to shares held for two years, reinforcing shareholder engagement.
Strategically vital to both France and Germany, KNDS supplies their primary battle tanks and artillery systems. It also leads the development of the future Main Ground Combat System to replace France’s Leclerc and Germany’s Leopard tanks.
At Eurosatory, KNDS unveiled a proposed battle tank design featuring a French turret on a German Leopard 2 chassis, offering a transitional solution before the next-generation tanks are deployed.
