KNDS, the Franco-German tank maker behind the Leopard 2, is preparing for a summer IPO while restructuring ownership to leave French and German governments with 40% stakes each. CEO Jean-Paul Alary vows to establish market-ready governance to protect against political interference as the company targets a €15bn-€20bn valuation amid European defense cooperation efforts.

The defense manufacturer reported strong financials with operating profit jumping 32% to €661mn and sales rising 16% to €4.4bn, supported by a €33.1bn order backlog. Germany's land systems segment revenue grew 17% to €2.5bn, almost double the French equivalent, reflecting Berlin's increased defense spending following the Ukraine war.

Alary confirmed talks with Czechoslovak Group about a potential tie-up while dismissing concerns that faster German growth would create tensions. A Freshfields probe into 2013 Qatar bribery allegations is "sufficiently complete" for KNDS to finalize its 2025 financial statements, though the CEO declined to comment on valuation targets despite falling defense sector valuations.