The pan-European armaments group KNDS has opted to postpone its initial public offering (IPO) to list on the Paris and Frankfurt stock exchanges "given the current market volatility in the European defense sector."
The company, which specializes in land defense systems, has stated that shareholders remain willing to resume the operation as soon as the stock market environment becomes more favorable.
"KNDS and its shareholders will continue to closely monitor capital market conditions and will be prepared to resume the IPO process as soon as market conditions permit," it assured in a statement.
The decision by the Franco-German consortium comes after the 'Financial Times' reported on the company's difficulties in getting investors to back a valuation of over 12 billion euros.
KNDS had confirmed its plan to launch an IPO and request the admission to trading of 20% of its ordinary shares on the Paris and Frankfurt stock exchanges a few days ago, with French GIAT and German KfW each retaining 40% of the ordinary capital.
The group had planned to conduct private placements among institutional investors in various jurisdictions, without considering any public offering aimed at the general public.
The company manages a pan-European industrial platform with approximately 11,000 employees spread across 32 production and service centers in 12 countries. In 2025, it recorded a turnover of 4.4 billion euros, an EBIT of 661 million, and a free cash flow of 980 million euros.
For the current fiscal year, KNDS anticipates an increase in revenue close to 30%, supported by solid demand across all its business lines. KNDS Land Systems France is expected to maintain a growth rate slightly above its 2025 pace, while KNDS Land Systems Germany will accelerate notably, with a projected rate more than double that achieved in the 2023-2025 period.
Furthermore, KNDS expects to achieve a free cash flow above 250 million euros in 2026 (excluding costs associated with the IPO), with investments in fixed assets around 750 million euros, driven primarily by the expansion of KNDS Land Systems in Germany.
In the medium term, the arms manufacturer projects annual revenues of between 11 and 12 billion euros, supported by strong growth in all its divisions and the global increase in defense spending. In this scenario, the role of KNDS Land Systems Germany stands out, whose revenues are expected to approximately triple compared to 2025 levels, while KNDS Land Systems France and KNDS Ammunition will grow at a similar pace to each other and slightly lower than the group as a whole.