KNDS: A Franco–German Land‑Systems Champion on the Road to a Potential IPO

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In the aftermath of Russia’s invasion of Ukraine, European governments have boosted defence budgets and begun a slow re‑armament. Listed defence firms have enjoyed surging valuations, while privately held groups are looking for ways to fund expansion. Against this backdrop, the Franco–German land‑systems specialist KNDS – created in 2015 by the merger of Krauss‑Maffei Wegmann (KMW) and Nexter Systems – is exploring a possible stock‑market listing.

In February 2025, KNDS reportedly hired advisers to examine a potential flotation as early as late 2025 or 2026. The aim would be to tap buoyant capital markets while allowing the founding shareholders – the German Wegmann family and the French government – to retain control. In September, KNDS CEO Jean-Paul Alary was told by the board to prepare for an IPO, even though no final decision had been made. According to Alary, the company was still in discussions with the German government.

KNDS was born out of a Franco–German drive to consolidate Europe’s fragmented armoured‑vehicle industry. The group combines Germany’s Krauss‑Maffei Wegmann – producer of the Leopard main battle tank and PzH 2000 howitzer – and France’s Nexter Systems, known for the Leclerc tank and CAESAR howitzer. The merger in 2015 created a holding company incorporated in the Netherlands and governed by a shareholder agreement between the Wegmann family, which owns 50% plus one share of KNDS via its vehicle, and the French state, holding 50% minus one share through the state agency GIAT industries. The group’s headquarters are in Amsterdam, but operations remain anchored in Munich, Kassel, Versailles and Roanne. By 2024, KNDS employed more than 10,000 people and reported a turnover of €3.8 billion (up from €3.3 billion in 2023), with an order backlog of around €23.5 billion. The company describes itself as Europe’s “land systems champion”, supplying main battle tanks, armoured vehicles, artillery systems, weapon stations, ammunition, bridging equipment and training solutions. KNDS maintains that its binational structure promotes standardisation and interoperability for European and NATO customers while preserving national industrial bases.

There was considerable interest in KNDS products, including the bridge module of the BOXER, which can also deploy and carry a LEGUAN bridge of MLC 100 weight class and 14 metres in length, said Emma Livingstone, Head of Communications, Marketing and CSR at KNDS UK, speaking at DSEI 2025 in London. (Image: NDR)

Breaking Records, Aiming Higher

The 2024 financial year marked a record for KNDS. It booked €11.2 billion in new orders, a 15% increase from 2023, driven by programmes such as the Leopard 2 A8 for Germany and the Czech Republic, the Serval light armoured vehicle, orders for the RCH 155 howitzer for Ukraine, exports of the CAESAR self‑propelled howitzer and a Boxer contract for Lithuania. The order backlog reached €23.5 billion, up 15%, providing multi‑year visibility. Revenues grew to €3.8 billion in 2024, with deliveries of Leopard 2, Griffon, Serval, Jaguar and Boxer vehicles as well as ammunition and the Leclerc upgrade programme. Nearly 1,000 new employees were hired in 2024, pushing the workforce above 10,000 and reflecting what the company calls “a war economy posture”.

Defence Industry Europe noted that KNDS’s 2024 results were “another year of growth records,” citing the €11.2 billion order intake, €23.5 billion backlog and €3.8 billion sales. The outlet emphasised that strong demand for tanks and artillery systems, especially for Ukraine and Eastern European allies, underpinned the figures. KNDS’s own homepage summarises these numbers and states that the group has over 10,000 employees, an order backlog of around €23.5 billion, incoming orders of €11.2 billion and an annual turnover of nearly €3.8 billion. The momentum continued into 2025, with new contracts including the Czech Republic’s order for 44 Leopard 2 A8 tanks worth about €1.3 billion and the establishment of a joint venture with Poland’s PGZ to produce 200,000 artillery shells per year, transferring technology and know‑how to bolster Europe’s munitions supply.

Heavy Tanks and Self-Propelled Artillery

Ukrainian tank crews climb out of Leopard 2A4 main battle tanks following a live-fire training at the Polish Army’s Combined Arms Training Centre (CAT-C) in Zagan, Poland. (IMAGE: NATO)

KNDS’s portfolio spans heavy tanks, armoured personnel carriers, reconnaissance vehicles, self‑propelled artillery, loitering munitions and medium‑calibre cannons.

The Leopard 2 series remains Europe’s benchmark main battle tank. The A7 variant features a 120 mm smooth‑bore gun, modular armour, a 1,500 hp MTU diesel engine and digital fire‑control and command systems. It weighs around 62 tonnes, offers protection against kinetic and chemical threats and has a road speed of 72 km/h. The A8 upgrade integrates an active protection system, EuroTrophy, improved sensors and communication suites, and a new turret drive. In May 2023, Germany ordered 18 Leopard 2 A8 tanks to replace those sent to Ukraine, and in May 2024, the Czech Republic signed a €1.34 billion contract for 44 A8s plus options for 17 more. KNDS competes in the MBT market against Rheinmetall’s Panther KF51, South Korea’s K2 Black Panther, the U.S. M1A2 Abrams and China’s Type 99. While the Leopard lacks some of the Panther’s modularity and 130 mm gun, it benefits from a vast European user base, a mature logistic chain and political momentum for standardisation.

Griffon, Jaguar and Serval

For the French Army’s Scorpion modernisation, Nexter, now part of KNDS, developed a family of wheeled armoured vehicles: the VBMR Griffon, EBRC Jaguar and VBMR‑L Serval. The Griffon is a 6×6 troop carrier accommodating up to 10 infantry and armed with a remote‑controlled weapon station; it is powered by a 400 hp diesel engine and offers modular armour and sensor suites. The Jaguar is a 25‑tonne 6×6 reconnaissance and combat vehicle equipped with a 40 mm CTAS cannon, anti‑tank missiles and advanced optronics. The Serval is a lighter 4×4 vehicle weighing around 15 tonnes with a crew of 2 + 8; it shares components with the Griffon and can carry machine‑guns or grenade launchers. These vehicles compete with Patria’s AMV vehicles, BAE Systems’ CV90 and BvS10 and General Dynamics’ LAV 6.0. Their advantage lies in the scalable Scorpion combat information system, which networks vehicles and sensors in real time.

The new KNDS 4×4 ACLV (Armoured Command Liaison Vehicle) at DSEI 2025. (Image: NDR)

Combat-Tested Artillery Systems

The CAESAR (CAmion Équipé d’un Système d’ARtillerie) is a truck‑mounted 155 mm howitzer. Weighing about 18 tonnes in its 6×6 version, it fires 155 mm NATO‑standard shells to 42 km with standard ammunition and over 50 km with rocket‑assisted projectiles. The 8×8 variant has more armour and ammunition but retains a semi‑automatic loading system. CAESAR has seen combat in Afghanistan, Iraq and Ukraine and has been exported to Denmark, Lithuania, Saudi Arabia and Thailand. Competitors include Rheinmetall’s PzH 2000 (tracked), Korea’s K9 Thunder (tracked) and BAE Systems’ Archer (wheeled).

The RCH 155 (Remote‑Controlled Howitzer 155) is an innovative self‑propelled artillery system based on the Boxer 8×8 chassis. KNDS describes it as the only remote‑controlled wheeled howitzer: the crew can operate the 155 mm/L52 gun from under armour or remotely, enabling fire missions without exposing soldiers. The system carries 30 shells and can deliver eight rounds per minute with ranges between 40 km and 54 km, depending on ammunition. Its turret is derived from the PzH 2000, but the high level of automation reduces crew size. In 2023, Germany ordered 18 systems, and in 2024, Ukraine became the first export customer. Competitors include BAE Systems’ Archer and Israel’s ATMOS howitzer.

Ammunition Production in Poland

With its intelligent sensor-fuzed attack modules, the KNDS 155mm BONUS is an advanced artillery round designed to detect and destroy a range of stationary and mobile armored vehicles. (Image: KNDS)

KNDS is ramping up ammunition production. In December 2024, it signed an agreement with Poland’s defence group PGZ to produce 200,000 155 mm shells per year in both countries; the deal transfers manufacturing know‑how and is part of Europe’s effort to support Ukraine. In 2023, the company also introduced Mataris loitering munitions, a family of unmanned aerial vehicles (UAVs) designed for surveillance and strike missions. According to Defence Industry Europe and EDR Magazine, the range includes the MT‑10 (light surveillance), MX‑10 Damocles (vertical take‑off micro‑loiterer), MV‑25 Oskar (25 kg kamikaze drone with an 8 kg warhead) and MV‑100 Veloce 330, which features a tandem charge and can hit armoured targets at up to 80 km. The drones use modular effector warheads, including explosively formed penetrators (EFPs), to defeat armour. These products position KNDS in the growing market for loitering munitions alongside Israeli (Hero, Harop), Turkish (Kargu, KEMANKEŞ) and American (Switchblade) systems.

Revolver Cannons for Helicopters

KNDS’s subsidiary CTA International produces the 30M 791 revolver cannon used on the Tiger helicopter and the 40 mm cased‑telescoped CTAS gun fitted to the Jaguar. In 2024, the company doubled production of its 20 mm aircraft mounts and delivered the 780th model. The 30M 791 fires 30×150 mm shells at up to 3,000 rounds per minute. KNDS is also integrating the Trophy active protection system, originally developed by Israel’s Rafael, onto the Boxer armoured personnel carrier; test firings in 2024 successfully intercepted anti‑tank projectiles. Such systems are becoming essential as anti‑tank weapons proliferate.

Expanding in Central and Eastern Europe

The combat-proven KNDS 155 mm 52 Cal is quipped with two autonomous, sensor-fused submunitions. BONUS MKII detects, identifies, and neutralises enemy vehicles with precision-guided strike capability. (IMAGE: KNDS)

KNDS’s core markets are its home countries – Germany and France – which fund the Leopard, Leclerc upgrade, CAESAR and Scorpion programmes. The company is also expanding in Central and Eastern Europe: recent contracts include Leopard 2 A8 tanks for the Czech Republic. CAESAR howitzers and Boxer vehicles for Lithuania, and Serval vehicles for Belgium. Ukraine is a significant new customer, receiving CAESAR howitzers, RCH 155s and ammunition. Outside Europe, KNDS has sold CAESAR systems to Denmark, Saudi Arabia, Thailand and Indonesia, and has exported the Leclerc tank to the United Arab Emirates and Jordan. In the naval sector, through Nexter Robotics, it supplies remotely operated turrets and munitions worldwide. The group emphasises that it can serve as Europe’s primary supplier of tanks and artillery, reducing dependence on U.S. or Asian products.

Challenging Panther and Abrams

The global land‑systems market is fiercely competitive. Rheinmetall – Germany’s other defence giant – is developing the Panther KF51, a next‑generation tank with a 130 mm main gun and digital architecture. BAE Systems offers the CV90 infantry fighting vehicle, Archer self‑propelled howitzer and M109A7 howitzer through its American subsidiary. General Dynamics supplies the Abrams, Ajax and Stryker family, while Hanwha is promoting its K9 Thunder and Redback IFV. KNDS competes by leveraging its Franco–German pedigree, deep integration across artillery, vehicles and ammunition, and a broad installed base of more than 7,500 tanks and vehicles worldwide. Its Leopard 2 remains the benchmark MBT for many NATO armies, giving KNDS a strong maintenance and upgrade business. The Scorpion family emphasises network‑centric warfare through the integrated combat information system, offering a degree of digital interoperability that some competitors lack. The RCH 155’s remote‑operation capability is unique among wheeled howitzers.

However, the company faces structural constraints. The two shareholders – the Wegmann family and the French state – must agree on strategy; this can slow decision‑making and limit risk‑taking. Defence procurement is also heavily influenced by national industrial policy: countries often favour domestic suppliers to protect jobs, meaning KNDS must offer industrial offsets or joint production, as seen with the PGZ partnership for shells. Furthermore, Rheinmetall and Hanwha are aggressively marketing their tanks to Europe’s east, and the U.S. may push the Abrams for NATO standardisation, so that competition will intensify.

Defence Spending Pushes Up Valuations

The surge in European defence spending has pushed up valuations of listed peers such as Rheinmetall and Saab; investors view defence stocks as growth plays amid geopolitical tensions. According to Reuters, KNDS is considering a small float because valuations are attractive and it needs capital for acquisitions and to expand production. CEO Jean‑Paul Alary said in September 2025 that the board instructed him to prepare for an IPO and that Berlin might take a stake to support the company. The German family shareholders are reportedly willing to sell some shares, although the French state wants to maintain significant control. The proceeds could fund investment in new factories, research on next‑generation combat systems, such as the Main Ground Combat System being developed with France and Germany, and potential acquisitions of smaller European suppliers. A listing would also broaden the investor base beyond France and Germany and give KNDS listed-company currency for mergers. Timing is critical. Europe’s defence budgets may plateau once the immediate Ukraine–Russia crisis stabilises, so raising capital now secures resources while sentiment is strong. Moreover, the company’s record order backlog provides earnings visibility that investors like. The challenge is to structure the offering without undermining state control or the family’s influence; Reuters notes that only a minority stake would likely be floated. Political approval from Paris and Berlin is required, and any listing must satisfy both governments’ strategic interests, complicating the process.

Managing Rapid Growth

KNDS’s future hinges on its ability to manage rapid growth while maintaining binational cohesion. Expanding production capacity to meet soaring demand – especially for shells and howitzers – requires capital and skilled labour. Integrating the industrial networks of KMW and Nexter remains a work in progress; CEO Alary has suggested that French factories could build parts for the Leopard tank and vice versa. The company must also invest in next‑generation platforms to remain competitive beyond the 2030s. The planned Main Ground Combat System (MGCS) – a Franco–German project to develop a successor to Leopard and Leclerc – has stalled amid political wrangling; a successful IPO could give KNDS more autonomy to drive the programme.

At the same time, rising geopolitical tension offers opportunities. Central and Eastern European countries are replacing Soviet‑era equipment with Western designs; KNDS’s broad product range positions it to capture a significant share of this market. The group’s investment in loitering munitions and active protection systems shows it is adapting to changes in warfare. If KNDS can leverage its European identity, secure industrial partnerships, as in Poland, and maintain a technological edge, it could become the continent’s pre‑eminent land‑systems integrator.

KNDS sits at the centre of Europe’s effort to rebuild land‑power capabilities. Its Franco–German structure provides political heft and industrial depth, and its products – from the proven Leopard tank to the innovative RCH 155 – are in high demand. The company posted record orders, sales and backlog in 2024. Exploring an IPO signals that management wants to capitalise on this momentum, raise funds for expansion and acquisitions, and perhaps prepare for a future in which pan‑European champions compete on a global stage. Success will depend on balancing state control with investor expectations, delivering on order commitments, and staying ahead of competitors through innovation.

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