Shaping New Balances in the European Defense Industry: KNDS Plans to Go Public in 2026
The Franco-German company KNDS (Nexter Systems + Krauss-Maffei Wegmann), which specializes in armored vehicles, is planning to go public in the coming months. It could be listed on the Frankfurt Stock Exchange.
In February 2025, several sources confirmed that KNDS was considering an IPO by the end of 2025 or in 2026, possibly on the Frankfurt Stock Exchange. This move is part of a phase of strong expansion, marked by an explosion in demand for military equipment since the invasion of Ukraine. Europe, engaged in a war economy, is seeking to secure its production chains, and KNDS appears to be a key player in this effort. Jean-Paul Alary, CEO of KNDS, announced that his board of directors has asked him to prepare for a possible IPO. However, he specified that no decision has been made at this stage. This caution is explained by an unstable international context where economics and war intersect, while giving KNDS the opportunity to strengthen its stature in the global market.
For Jean-Paul Alary, the line is clear: „The board of directors has asked to be ready for an IPO, but the final decision has not yet been made.“ The prospect of a valuation of around €20 billion shows the potential appetite of the markets for this type of asset. A listing would give KNDS the ability to massively finance new industrial capacity and consolidate its position against its American competitors. The challenge for KNDS is not only financial, but also political. Share ownership remains divided between France, via the Agence des participations de l’État, and the German Wegmann family. This joint governance, inherited from the Nexter-Krauss-Maffei Wegmann merger, complicates any strategic decision. Going public would mean defining new balances, especially as Berlin is considering becoming a reference shareholder. On the other hand, management rules out any participation by groups such as Rheinmetall, Airbus, or Thales, other heavyweights in the sector.
KNDS France, formerly Nexter Systems, specializes in armored vehicles, artillery, and related defense systems, with a focus on the French SCORPION program and export markets. KNDS France is the main developer and manufacturer of systems such as Leclerc Main Battle Tank, an advanced main battle tank undergoing upgrades for enhanced mobility, firepower, and connectivity, central to French armored forces; Griffon Multi-Purpose Armored Vehicle, a 6x6 wheeled vehicle serving as an infantry carrier and command platform in the SCORPION program, emphasizing modularity and troop protection; Jaguar Combat Reconnaissance and Security Vehicle, an 8x8 wheeled armored vehicle designed for reconnaissance, with advanced sensors and anti-tank capabilities, also part of SCORPION; CAESAR Self-Propelled Howitzer, a highly mobile 155mm wheeled artillery system known for rapid deployment and long-range fire support, widely exported; TITUS 6x6 Armored Vehicle, a protected personnel carrier with high payload capacity, suitable for troop transport and logistics in contested environments.
KNDS Deutschland, formerly Krauss-Maffei Wegmann (KMW), focuses on heavy tracked vehicles, artillery, and bridge systems, with strong export presence in Europe and beyond. KNDS Deutschland produces notably the Leopard 2 Main Battle Tank, a world-leading main battle tank platform with variants like the A7V and A8, renowned for superior armor, firepower, and upgrades for modern warfare; Panzerhaubitze 2000 (PzH 2000) Self-Propelled Howitzer, a 155mm tracked artillery system providing precise, high-volume fire support with proven battlefield performance; Leguan Bridge-Laying System, a mobile bridging solution for tanks and vehicles, enabling rapid obstacle crossing in operational theaters. Through the PSM joint venture with Rheinmetall, KNDS Deutschland also produces the Puma Infantry Fighting Vehicle, a next-generation tracked armored vehicle with advanced protection, automation, and networked warfare capabilities for mechanized infantry. Within the Artex joint venture KNDS Deutschland produces the Boxer 8x8 Armored Personnel Carrier, a modular wheeled vehicle family offering high mobility, survivability, and mission-specific configurations for transport and combat roles.
Another obstacle could delay the schedule: the legal dispute with Triton Partners over transmission manufacturer Renk. KNDS had an option to increase its stake from 7% to 25% at a price of €20 per share, while the stock is now trading at around €60. Triton challenged the transaction in court, creating significant uncertainty. The outcome of this lawsuit will weigh heavily on the group’s industrial strength. Despite these tensions, KNDS consolidated its position in July 2025 by increasing its stake in Renk to 15.84%, up from 6.7% previously. This move confirms a strategy of vertical integration, which is a guarantee of credibility among investors. The possible listing of KNDS in 2026 illustrates more broadly the industrial shift taken by Europe. Military budgets are skyrocketing: Germany’s exceeded €90 billion in 2025, an increase of more than 80% since 2020. In this context, KNDS’s arrival on the stock market would not only be a financial operation, but also a symbol of the reorganization of economic priorities.
