San Francisco Frontiers - As IPO nears, arms maker KNDS reports booming profits

The news came after the German government announced last week it planned to seek a substantial stake when the group launches its IPO as it tries to gain more influence over the arms manufacturer.

KNDS said its revenues grew nearly 16 percent last year, reaching 4.4 billion euros ($5.1 billion), as European countries re-arm to face a hostile Russia and other geopolitical turmoil.

Operating profits reached 661 million euros, up from 500 million euros in 2024. The group's order backlog hit 33.1 billion euros.

The Amsterdam-headquartered company said 2025 was a "landmark year", pointing to the "structural shift in the geopolitical environment and sustained increases in European and NATO defence budgets following recent conflicts".

The group -- whose products include the Leopard 2 battle tank and Caesar howitzers -- is continuing preparations for its IPO in 2026, with a dual listing in Frankfurt and Paris, it said in a statement.

"Work within the company is progressing with a very satisfactory level of readiness, and remains fully in line with the initial schedule," it said.

Reports earlier this month said that Berlin had sought a delay to the share offering as officials argued over the same of a potential stake.

However KNDS reportedly grew frustrated with Berlin's foot-dragging and publicly insisted it would push ahead with the IPO.

Berlin confirmed soon afterwards it was aiming for an initial holding of 40 percent, to be reduced to 30 percent in two to three years.

The French state has had effective control of the group as a French public company holds a significant stake, with Germany's Wegmann family owning the other part.

But the family now want to sell their stake.

It is the latest in a string of defence industry share offerings as companies seek to cash in on growing investor appetite for the sector.

D.Parker--SFF