KNDS Lands British Artillery Contract and German Government Backing as IPO Countdown Begins
24.05.2026 - 22:31:46 | boerse-global.de
The UK Ministry of Defence has placed a ÂŁ1bn order for 72 RCH 155 howitzers from KNDS, handing the Franco-German defence contractor a major endorsement just months ahead of its planned dual listing in Frankfurt and Paris. The systems, capable of striking targets up to 75 kilometres away, will replace the AS90 guns that Britain sent to Ukraine in 2023, with first deliveries scheduled for 2028. Production at sites in Stockport and Telford is expected to create around 500 jobs in the British defence industry.
The deal further swells KNDS’s already bulging order book. At the end of 2024, the backlog stood at roughly €23.5bn — a figure driven by sustained demand for the Leopard 2 battle tank and the RCH 155 platform. The UK contract alone pushes that backlog past €20bn, underscoring the tailwind from rising NATO defence expenditure. For the company’s upcoming initial public offering, the news provides an extra layer of momentum.
On the ownership front, the German government is locking in a 40% stake in KNDS before the IPO, matching the holding of the French state. The entry price, based on an enterprise valuation of up to €20bn, would cost Berlin around €8bn. Over the longer term, Berlin intends to reduce its share to 30%, but the initial arrangement creates a symmetric structure where both governments retain equal influence over a manufacturer of system-critical platforms such as the Leopard 2 and the Boxer reconnaissance vehicle.
Should investors sell immediately? Or is it worth buying KNDS?
While the state anchors are being set, KNDS is also tidying up its balance sheet. Last Friday it sold roughly 5.8 million shares in gearbox subsidiary RENK, generating proceeds of about €262m. The sale reduces KNDS’s holding in RENK to around 10%, with a 180-day lock-up on the remaining shares. The move sharpens the group’s focus on its core armoured-vehicle and artillery business and serves as a test of investor appetite ahead of the main event. RENK shares, which closed at €48.96 on Friday, gained 1.74% on the day, suggesting the market absorbed the placement without disruption.
With the IPO pencilled in for early summer 2026, KNDS is awaiting the completion of its audited 2025 financial results. The audit is expected to wrap up this month, and the final numbers will feed directly into the valuation models being used for the dual listing. Revenue for 2024 came in at €3.8bn, leaving analysts keen to see whether that trajectory was maintained last year. In parallel, governance standards are being tightened: Christian Schulz, the former chief financial officer of RENK who steered that company’s IPO, joined KNDS’s board in January, bringing direct experience of a cross-border listing. An independent investigation is also reviewing a transaction from 2013, part of a broader push to meet the compliance expectations of institutional investors.
The IPO proceeds are earmarked for expanding industrial capacity and pursuing bolt-on acquisitions in the land-systems sector. Both the German and French governments are expected to retain significant influence after the listing, citing national security concerns — a factor that may limit the free float but also provides a layer of stability that institutional buyers often find reassuring.
The political backdrop is more nuanced. An INSA poll this month found that only 17% of Germans trust the Bundeswehr’s defence capability, while 72% express outright scepticism. Yet the stark contrast between public sentiment and the swelling order books of European defence contractors — with KNDS at the forefront — is unlikely to cool the enthusiasm of investors who see the sector as a structural growth story. The UK howitzer order, the government-backed ownership structure and the clean exit from RENK all point to a company that is meticulously stage-managing its debut.
Ad
KNDS Stock: New Analysis - 24 May
Fresh KNDS information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
