KNDS Sinks €1bn into Mercedes Factory as Dual Listing Clears Last Compliance Hurdle
Veröffentlicht: 03.06.2026 um 07:02 Uhr, Redaktion boerse-global.de
Amid a record €33.1bn order pile-up, KNDS is taking an unusual path to boost production capacity: it is negotiating the acquisition of a Mercedes-Benz plant in Ludwigsfelde for roughly €1bn. The site, which currently employs 2,000 workers, would be converted to build the "Boxer" wheeled armoured vehicle, marking a sharp pivot from civilian automotive manufacturing to military production. Separately, the Franco-German defence group has also expressed interest in Volkswagen’s Osnabrück facility, where passenger car assembly is due to end in 2027. The shift from automotive lines to defence output is designed to close the gap between surging NATO demand and available factory floor space.
The expansion push comes just as KNDS clears the final regulatory obstacle to its planned dual IPO in Frankfurt and Paris. A compliance investigation into a 2013 contract for the delivery of Leopard tanks and PzH-2000 howitzers to Qatar had threatened to delay the listing. External lawyers and advisers gave the deal a clean bill of health on 2 June 2026, finding no evidence of criminal conduct by current or former employees. The all-clear was essential to finalise the securities prospectus and audit the 2025 financial statements, both of which had suffered delays.
KNDS’s 2025 results underline why the company is racing to add capacity. Revenue climbed 15.9% to €4.4bn, while operating profit (EBIT) hit €661m, translating into a margin of 15.0% — up from 13.2% a year earlier when EBIT was €500m. The order book provided the real headline: new orders reached a record €13.5bn, swelling the backlog to €33.1bn. The ammunition segment proved particularly strong, with sales jumping 24.7% to €612m, while the German Land Systems division grew 17.4% to €2.5bn and the French business expanded 9.6% to €1.3bn.
Should investors sell immediately? Or is it worth buying KNDS?
To fund the next stage of growth, KNDS is pressing ahead with its dual listing, which analysts value at €20bn to €25bn. Germany’s government plans to take an initial 40% stake via KfW, balancing the existing French holding. Over the following three years, both states intend to reduce their stakes to roughly 30% each, opening the door for wider public ownership. CEO Jean-Paul Alary has said the IPO will give the group faster access to capital for investments in technology, production capacity and talent.
The workforce has already grown to about 11,000 employees, a 7.3% increase year-on-year, and further hiring is planned for 2026 in manufacturing, assembly and research. With the compliance probe now settled and the prospectus finalised, KNDS can focus entirely on converting its unprecedented backlog into hardware — a challenge that will demand every available square metre of factory space, including the freshly acquired auto plants.
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