KNDS Rolls Out Battle Tanks and Super-Howitzers as €20bn IPO Faces Political Headwinds
20.06.2026 - 13:33:47 | boerse-global.de
The countdown to KNDS’s dual listing in Frankfurt and Paris is entering its final stretch, but the deutsch-french defence group is using the Eurosatory 2026 show in Paris to refocus attention on what it does best: hardware. On 15 June, the company unveiled two major weapons systems — a new main battle tank for France called CAPINT and a long-range howitzer dubbed LORAS — in what many see as a deliberate effort to bolster investor confidence ahead of a float that has already lost some of its shine.
KNDS had originally targeted a market capitalisation of around €25bn, but that has now been trimmed to between €18bn and €20bn. The downgrade reflects a dispute with Berlin over state veto rights and persistent uncertainty surrounding the Franco-German MGCS future tank programme. The IPO, coordinated by Lazard and backed by Bank of America, Deutsche Bank, Goldman Sachs and Société Générale, is still pencilled in for June or July, with September as a fallback.
The CAPINT tank is designed as a bridge solution for the French army. With the Leclerc XLR set to be phased out before the MGCS enters service, KNDS has married a proven Leopard 2A8 chassis from Germany — delivering 1,500hp — with an unmanned ASCALON turret from France. The three-person crew sits entirely in the hull, while an autoloader feeds 22 rounds through a 120mm smoothbore gun that can be upgraded to 140mm. First deliveries are planned for the 2030s. The company says the system will include drone defence, an open digital architecture, and connectivity with unmanned ground vehicles.
LORAS targets a recognised NATO capability gap: the range of standard 155mm tube artillery. While existing systems such as CAESAR and PzH 2000 use the 52-calibre standard, LORAS employs a longer 58-calibre barrel with an enlarged chamber. That pushes effective range to 60km with standard ammunition and 80-100km with precision and specialised rounds. On the Eurosatory floor, KNDS showed the system mounted on a German Boxer tracked vehicle.
Should investors sell immediately? Or is it worth buying KNDS?
Financial metrics remain solid. Revenue rose nearly 16% in 2025 to €4.4bn, while operating profit climbed to €661m, representing a 15% margin. The ammunition division was the standout performer, with sales up almost 25% as European rearmament accelerates. Order intake reached €13.5bn, and the total order backlog stood at €33.1bn at the end of last year. Early June also brought a major contract from Switzerland: 32 DONAR 10×10 wheeled howitzers — Bern’s biggest artillery investment in years.
Yet the MGCS cloud hangs heavily. Rheinmetall CEO Armin Papperger confirmed that France is considering reducing its stake in the joint programme — or even withdrawing entirely. A final decision from Paris is still pending. Since the programme’s inception, Rheinmetall, KNDS and Thales have collectively received only €25m in public funding. A French government official stressed that the project remains important for both countries, but Papperger made clear that discussions over funding levels are ongoing. KNDS explicitly positions CAPINT as a bridge to the MGCS — a message that is both smart marketing and an admission that the flagship programme’s timetable is slipping.
Away from the heavy steel, KNDS is also pushing into digital warfare. The company presented a universal drone launch container that integrates TYTAN intercept systems and AI-controlled combat drones from Helsing. And in a tie-up with Nokia, KNDS is bringing a secure 5G network directly into armoured infantry vehicles, enabling real-time data exchange between soldiers and unmanned systems.
KNDS at a turning point? This analysis reveals what investors need to know now.
For investors, the Eurosatory rollout offers a glimpse of the pipeline that could support KNDS’s growth story beyond the IPO. But the real test will come when the shares hit the market — and whether the political friction between Berlin and Paris can be contained before the listing.
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