KNDS Powers Ahead in 2024: Major Orders, Deeper EU Ties & Export Gains

KNDS Group (the result of Franco-German combination of KMW and Nexter) recorded a landmark year in 2024, with order intake rising by over 40% year-on-year to about €11.2 billion and its order backlog increasing 15% to €23.5 billion. Sales likewise grew to €3.8 billion, driven by armored vehicles (Leopard 2, Scorpion programme: Griffon, Jaguar, Serval), artillery (RCH 155, CAESAR), ammunition, support services, and upgraded main battle tanks. The workforce moved past 10,000, aiming toward 11,000 in 2025. These figures show strong momentum amid Europe’s heightened demand for land systems and munitions. [1][8]

Simultaneously, KNDS is deepening its strategic integration in European defence. The MGCS (Main Ground Combat System) project has been formalized via a shareholder agreement among KNDS France, KNDS Deutschland, Rheinmetall Landsysteme, and Thales, aiming for a cross-border battle-tank replacement by 2040 with equal ownership and workshare split between Germany and France. [2][5] Separately, a Letter of Intent was signed with Leonardo to co-develop a wheeled 155 mm mobile artillery system for the Italian Army, combining KNDS’s artillery module with Leonardo’s vehicle platform and CNC/avionics systems. [3] Also, KNDS France is acquiring 100% of the defence business of Texelis, enhancing its production of armoured vehicle components and further centralizing capability within the KNDS group. [4]

On the contracts front, besides domestic French awards (e.g., upgrading 200 Leclerc tanks to XLR standard; telescoped 40 mm ammunition for JAGUAR and RAPIDFire systems), KNDS is expanding its exports. Lithuania has ordered more CAESAR Mk II howitzers; the UK and Germany have jointly contracted KNDS’s RCH 155 system; and KNDS France is set to supply weapons for U.S. Special Forces (robots). These deals show both product diversification and geographic reach. [5][6] However, some challenges remain, including supply-chain pressures, schedule risk for the MGCS timeline, and ensuring cross-border industrial alignment. The change in supervisory board leadership, with Tom Enders appointed November 3, 2025, suggests intention to steer those challenges. [7]

Strategic implications include: KNDS is positioning as a European land systems champion, critical in NATO/EU force modernization; its breadth of portfolio—from robots through artillery through MBTs—offers resilience. Investment risk for external investors would hinge on defense policy continuity in Germany, France, and partner states; cost inflation; and execution on MGCS. Key open questions include exact valuation and financial terms for acquisitions (like Texelis), the pace of local production (e.g., in Ukraine), export licensing hurdles, and how KNDS will finance growth as it considers a potential listing in 2026. [1][4][6]