German defense and key power systems manufacturer Vincorion announced on Friday its plan to go public on the Frankfurt Stock Exchange in the first half of 2026. The IPO will be coordinated by Berenberg Bank, BNP Paribas, and JP Morgan, and the shares offered will be from the existing holdings of the company’s major shareholder, Star Capital Partnership.
Market observers note that, amidst the rapid growth in European military spending and defense industry demand, defense technology companies are catching the attention of capital markets. Vincorion's listing is viewed as another example of the expanding financing channels for the European defense industry.
Defense Orders Increase, Revenue and Backlog Expand Simultaneously
Previously a subsidiary of Jenoptik (JEN), Vincorion primarily produces key power systems and stabilization equipment. Its products are used in emergency generators for "Typhoon" fighter jets, power systems for armored vehicles, and NATO-related projects such as the IRIS-T and Patriot air defense systems.
The company disclosed that its revenue is expected to be around 240 million euros in 2025, representing a growth of about 20% from 200 million euros in 2024. At the same time, the fixed order backlog has reached 435 million euros, mainly from land-based weapon systems and air defense equipment projects.
Vincorion stated that as European countries enhance their defense capabilities, the company is continuously expanding production capacity to meet demand.
Expansion of European Military Spending Drives Defense Firms' Financing
Since the outbreak of the Russia-Ukraine conflict, European countries have accelerated the replenishment of their military stockpiles and increased defense budgets. In 2022, the German government established a 100 billion euro special defense fund and pledged to raise defense spending to more than 2% of GDP.
Against this backdrop, the valuation of European defense companies in the capital market has seen a significant rise. Analysts point out that the Czech defense company Czechoslovak Group saw a substantial stock price increase after its listing in Amsterdam in January this year, with a market capitalization exceeding 30 billion euros. Market experts believe that as the European defense industry enters a long-term expansion cycle, defense technology companies like Vincorion may become a crucial growth segment in the European IPO market.
