The planned initial public offering of KNDS may still take place before the end of 2026, according to Jean-Paul Alary, chief executive of the Franco-German defence company. In an interview with German business newspaper Handelsblatt, Alary said the IPO has not been cancelled. The plan remains possible if market conditions meet the expectations of KNDS shareholders. Reuters reported the comments on October 1, 2026.
The statement gives a fresh update on a deal that has faced several delays this year. KNDS had planned a major stock market debut in 2026, but the company put the plan on hold in July. The main reason was the market climate for defence shares. The company now says it remains ready to act if conditions improve.
KNDS has not cancelled its IPO plan
Alary made it clear that the IPO remains the main plan for KNDS. The company board put the deal on hold at the end of June because the market did not offer the value that shareholders wanted. However, the board also asked the company to stay ready so that the IPO could start if conditions become suitable.
This means KNDS has not walked away from the stock market. Instead, it has kept the plan open while it watches the market.
Alary said a 2026 IPO remains possible if market conditions match shareholder expectations. He also said an earlier launch would be better for KNDS because it would allow the company to close the IPO process and use the new structure for its next stage of growth. A later IPO remains possible as well.
The latest comments come after weeks of doubt about the future of the deal. Reports in September had suggested that the IPO could face another delay. The German government has also hoped for a stock market launch because its planned entry into KNDS is tied closely to the IPO.
Why the IPO was put on hold
The key issue is valuation.
KNDS shareholders do not want to sell at a value that they see as too low. Handelsblatt reported that the owner family wants a company value of between €12.5 billion and €15 billion. Alary, however, said KNDS itself has never confirmed this range.
The company sees Rheinmetall as a natural comparison, although Alary said it is not the only reference point. Defence share prices have faced pressure, and that has made it harder for KNDS to reach the value its shareholders expect.
This issue played a major role in the July delay. KNDS had planned to move toward a listing in Paris and Frankfurt, but the owners decided that the market was not strong enough for the proposed sale.
The problem is simple. KNDS wants to sell shares at a value that reflects its business and future plans. Investors, at the same time, decide what they are ready to pay based on market conditions, company results and the value of similar listed defence firms. If those two sides do not agree, an IPO becomes difficult.
Rheinmetall remains an important reference
Rheinmetall has become an important name in the KNDS IPO story because investors use the German defence company as one reference for the value of KNDS.
Rheinmetall shares fell sharply earlier this year. Handelsblatt reported that its share price dropped from more than €1,900 in February to below €1,200 in mid-June. A further fall came after Germany’s defence ministry stopped plans for six new navy frigates. Rheinmetall’s share price fell by more than 17% on that day.
Such share price moves matter for KNDS because public investors often compare companies within the same sector. If the value of a large listed defence company falls, investors may also take a more careful view of the value of a new defence company that wants to enter the stock market.
Alary said markets can change quickly. He also noted that shareholder views and expectations can change as market conditions move.
For KNDS, this leaves the IPO open but uncertain. The company can prepare for a deal, yet the final decision depends on whether the market gives the shareholders the value they seek.
What the IPO structure could look like
The planned ownership structure is also an important part of the story.
The reference model calls for 20% of KNDS to be placed on the stock market, while 40% would remain with the French state and 40% would go to the German state.
France currently owns 50% of KNDS. The planned structure would reduce the French state’s stake to 40%. The German side would hold 40%, while the remaining 20% would become free float through the IPO.
The German government’s entry into KNDS is closely linked to the IPO plan. The proposed stock market structure would give both France and Germany equal ownership.
For the company, the 20% free float would also create a new group of public shareholders. That would include large investment firms as well as private investors.
Alary said the addition of private investors would not solve the main valuation problem. Instead, the retail portion would allow individuals who have shown interest to take part in the IPO.
KNDS wants the stock market for more than cash
One important point from Alary is that KNDS does not need the IPO simply to raise money for its current investment plans.
He said the company has enough funds for its planned investments. The main reason for the IPO is to help KNDS make decisions faster and carry out its strategy more efficiently in a defence sector that is changing quickly.
A public listing could also bring more financial discipline and outside review. Alary said institutional investors can challenge companies and help create faster decisions, stronger financial discipline and clearer processes.
A listed structure could also help KNDS if the European defence sector goes through further consolidation. A public share base and a suitable capital structure could give the company more options if new business opportunities appear.
This makes the IPO more than a simple fund-raising exercise. KNDS sees the stock market as a tool for its long-term strategy.
Strong growth supports the IPO case
While the IPO has faced market problems, KNDS has reported strong business growth.
The company said its revenue rose 37% in the first half of 2026 compared with the same period a year earlier. Its order intake rose 38%.
For the full year, KNDS expects revenue growth of about 30%. The company also has an order book of about €33 billion, according to Handelsblatt.
These numbers show why KNDS continues to pursue the IPO despite the delay.
The company is part of a European defence sector that has seen higher demand as governments raise defence spending. KNDS makes major military vehicles and systems, including the Leopard 2, Leclerc, Puma and Boxer.
KNDS was created in 2015 after the merger of German tank maker Krauss-Maffei Wegmann and French state-owned Nexter. Today, the company has almost 11,000 employees.
KNDS plans €1.5 billion in capacity investment
The company also plans major investment in its industrial base.
KNDS expects to spend about €1.5 billion in 2026 and 2027 to expand its production capacity. The plan covers its French systems business, German systems business and ammunition operations.
Germany is a major focus. KNDS expects to raise production there over the next two to three years.
In France, the company plans a second facility for the filling of 155-millimetre artillery shells. The new site should allow KNDS to fill five times as many shells as it did in 2022.
KNDS has also taken over a former Alstom site in Görlitz. About 40% to 50% of the planned industrial area there is already ready for production, according to Alary. The company is also training workers from the rail sector, including welders, for defence production.
These plans show the scale of the production increase that KNDS expects over the next few years.
The company expects more demand
The strong order book has added pressure on KNDS to expand its industrial capacity.
The company expects growth across all three main areas: France, Germany and ammunition. Its 2026 outlook also calls for revenue growth of around 30% compared with 2025.
According to KNDS’s June IPO materials, the group expects an EBIT margin of around 12% in 2026, excluding one-time IPO costs. It also targets free cash flow of more than €250 million in 2026, again excluding IPO costs.
The company expects its profit margin to rise toward its medium-term target after the current investment phase.
That creates an interesting situation for the planned IPO. KNDS has strong business demand and major expansion plans, but it also faces a market that has become less willing to accept high defence valuations.
2026 remains possible, but 2027 is also an option
Alary did not give a fixed new IPO date.
He said a 2026 IPO remains possible if market conditions meet shareholder expectations. He also said a later launch could happen.
However, there is another timing issue. France will face a presidential election campaign in 2027. Alary said a stock market launch during such a campaign would not be ideal because an election period can create uncertainty.
This makes the timing more important for KNDS. If the company wants to list in 2026, it needs the market to support the required value. If the deal moves into 2027, the political calendar could add another factor to the decision.
No alternative plan at present
There has also been talk of other ways to change KNDS ownership.
Alary rejected speculation about a private-equity deal or another alternative to the IPO. He said he has one clear plan: the stock market listing.
He also said there is no current discussion about other models. If a different structure comes up in the future, he said it would have to be judged based on what works best for KNDS and its strategy.
This leaves the IPO as the central plan for the company.
What happens next
The next major step is a change in market conditions that could allow KNDS to move forward with its IPO.
The company has already done much of the preparation. The board has kept the project ready, and the business continues to grow. But the value that shareholders expect remains the key issue.
The proposed structure calls for 20% of KNDS to go to public investors, while France and Germany would each hold 40%. The German government’s planned entry is closely tied to the IPO.
For investors, the key figures are clear. KNDS has an order book of about €33 billion, expects around 30% revenue growth in 2026, plans about €1.5 billion of investment across 2026 and 2027, and targets more than €250 million in free cash flow in 2026, before IPO costs.
The IPO itself, however, remains dependent on valuation and market conditions.
KNDS keeps the IPO door open
The latest comments from Jean-Paul Alary show that KNDS has not given up on its 2026 IPO.
The company wants to list its shares, but it does not want to do so at a value that fails to meet shareholder expectations. That is the central issue behind the delay.
A strong business outlook gives KNDS a reason to keep the plan alive. Its revenue and order intake have grown sharply, its order book is large, and it has major production plans for Germany and France.
At the same time, the fall in defence share prices has made the valuation question harder. Rheinmetall remains an important comparison, but KNDS says it is not the only one.
For now, the message from the company is simple: the IPO is delayed, not cancelled. A 2026 launch remains possible if market conditions improve enough. If that does not happen, KNDS may wait longer, with 2027 bringing a separate issue because of the French presidential election campaign.
The final decision will therefore depend on the market, shareholder expectations and the value investors are ready to place on one of Europe’s major defence companies.
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