KNDS CEO Jean-Paul Alary confirmed that the company intends to proceed with its planned Initial Public Offering (IPO) despite the temporary suspension of the market listing this summer. Speaking to the “Handelsblatt”, Alary clarified that the decision was made by the supervisory board at the end of June due to market conditions, stating that the current achievable valuation does not yet meet shareholder expectations. However, the board has instructed management to remain ready so that the IPO can proceed at any time.
Alary believes an IPO in 2026 remains viable, provided that market conditions align with shareholder expectations. While a sooner start would be ideal for KNDS to capitalize on the listing for the next phase of development, he admitted that a later date is also possible. He cautioned that delaying the IPO until 2027 could become risky due to the upcoming French presidential election campaign, as an election period introduces uncertainty that would be ill-suited for a listing.
Regarding the IPO structure, KNDS intends to stick to the original model where 20 percent of the company will be offered publicly. This allocation will be balanced, with 40 percent held by the French state and 40 percent by the German state, noting that France currently holds a 50 percent stake in KNDS. Alary added that, in addition to institutional investors, private individuals will be able to subscribe, although he stressed that this change does not solve the core valuation issue.
On the operational front, KNDS plans a significant expansion of its production capacity in Germany and is currently searching for two additional industrial partners to achieve this goal. Alary explained that ramping up production in Germany over the next two to three years is crucial, suggesting that an announcement regarding at least one potential partner could come before the year’s end.
This expansion is underpinned by a strong increase in demand. In the first half of 2026, sales rose by 37 percent compared to the previous year, and incoming orders jumped by 38 percent. For the full year, Alary expects sales growth of around 30 percent.
To facilitate capacity expansion, KNDS plans to invest approximately 1.5 billion euros in 2026 and 2027, supporting all three business areas: systems in France, systems in Germany, and ammunition. In France, the Group intends to construct a second facility for loading 155-millimeter artillery shells, which will eventually enable production five times higher than in 2022. Furthermore, at the Görlitz location, a former Alstom plant, 40 to 50 percent of the planned industrial area for production has already been developed one and a half years after the acquisition.
