KNDS N.V., a prominent Franco-German land defense company and maker of Leopard 2 and Leclerc tanks, announced on July 1, 2026, its decision to postpone its Initial Public Offering (IPO). This delay is attributed to current market volatility within the European defense sector. The company's shareholders intend to resume the IPO process once market conditions become more favorable. KNDS had completed the majority of its preparatory phases for the listing and engaged extensively with investors, who reportedly aligned with KNDS's strategic vision.
Prior to the postponement, KNDS's IPO target valuation had reportedly been slashed from an initial expectation of over €20 billion to approximately €15 billion. Investor skepticism reportedly stemmed from the deal's structure, particularly the proposed ownership. Following the listing, the French state (via GIAT) and the German state (via KfW, acquiring its stake from the Wegmann family) were each expected to hold 40% of the company, leaving only a 20% free float for public investors. This setup, combined with a 10-year lock-up period for state holders, raised governance concerns among potential investors.
Despite the IPO challenges, KNDS exhibits strong financial fundamentals. For fiscal year 2025, the company generated €4.4 billion in revenue, marking a 16% year-over-year increase, along with €661 million in EBIT and €980 million in free cash flow. KNDS boasts a record order backlog of €33.1 billion as of December 31, 2025, which represents roughly seven and a half years of revenue at current rates. The IPO was planned as a secondary sale of existing shares, meaning no new capital would have been raised for the company itself. KNDS and its shareholders remain committed to delivering for customers, expanding European presence, and strengthening Europe's defense capabilities.
