European defence group KNDS plans dual listing in 2026

Adds details on IPO in paragraphs 5-7, 10

BERLIN, Dec 17 (Reuters) - Franco-German defence group KNDS plans to launch an initial public offering in Paris and Frankfurt next year, it said on Wednesday, hoping to tap into strong investor interest in defence stocks.

The long-expected IPO, which is subject to market conditions, will support KNDS' long-term growth strategy, broadening its access to capital markets and enabling further investment in industrial capacity, technology and innovation, it said.

Last year, KNDS had sales of 3.8 billion euros ($4.5 billion), up from 3.3 billion in 2023. Its order intake, which was 11.2 billion euros in 2024, remained strong during 2025, it said.

The company gave no additional details on the planned IPO.

Two financial sources said KNDS could be valued at up to 20 billion euros.

They said the company was aiming for listings in June and July and was currently selecting banks for the IPO.

"In the defence industry, everyone will accelerate their IPO plans," one investment banker told Reuters.

DEFENCE SPENDING SURGE IN EUROPE

European defence firms have been boosted by a surge in military spending since Russia's full-scale invasion of Ukraine in 2022, as governments move to bolster their own security while supplying Kyiv with weapons and ammunition.

Formed in 2015 with the merger of Germany's Krauss-Maffei Wegmann (KMW) - the maker of Leopard tanks - and French state-owned weapons maker Nexter, KMW's previous private owners and the French government are joint shareholders in the company.

KNDS CEO Jean-Paul Alary suggested in September that the German government might take a stake in the company. Financial sources have said a decision on this should be made by February.

Alary has ruled out an investment from Germany's Rheinmetall RHMG.DE, citing differing strategies.

While Rheinmetall is diversifying, KNDS intends to remain focused on making land systems, including tanks and ammunition.

KNDS said Christian Schulz, former chief financial officer of tank gearbox maker Renk R3NK.DE, would join the board from January, bringing experience in IPOs.

The company said a dual listing would give it greater scope to invest in technology, capacity and talent.

It has a multi-year order backlog, amounting to about 23.5 billion euros in 2024, with all business units contributing and what it describes as above-industry profitability.

($1 = 0.8533 euros)

(Reporting by Madeline Chambers and Alexander Huebner in Munich. Editing by Thomas Derpinghaus and Mark Potter)

((Madeline.Chambers@thomsonreuters.com))