KOG.OL

Kongsberg Gruppen ASA

Next est. report 2026-10-29 · BMO

Drones '26: Subsea Drones & UUVs Global Defense '26: European Warfare & Defense Modern Warfare '26: Greenland & Arctic Defense Modern Warfare '26: Military Connectivity & Tactical Networks Modern Warfare '26: SONAR & Subsea Systems Space Supply Chain '26: Ground Systems & Earth Stations US Industrial Manf '26: Digital Twin Software

Loading…

Overview

Kongsberg Gruppen ASA (KOG.OL) is a Norwegian technology company focused on defense and advanced solutions. Its main segments are Kongsberg Defence & Aerospace,

Kongsberg Gruppen ASA (KOG.OL) is a Norwegian technology company focused on defense and advanced solutions. Its main segments are Kongsberg Defence & Aerospace, providing air defense, missiles (including high-volume affordable mass from Zone 5), and combat systems, and Kongsberg Discovery, specializing in underwater technology. Defense and missile systems comprise approximately 77% of revenues. It serves allied nations' armed forces and global commercial customers.

What They Do (Plain English & Analogies): Kongsberg is a Norwegian technology company that builds advanced systems primarily for defense and specialized technology sectors. Imagine them as a high-tech engineer for land, sea, and space. They create sophisticated equipment and software that helps militaries defend against air threats, launch advanced missiles, and conduct underwater surveillance. They are like a specialized factory that not only makes super-advanced, precise weapons but also mass-produces simpler, very effective missiles quickly, like a high-tech assembly line for defense. Following a demerger in April 2026, the company now focuses on defense, aerospace, and advanced sensing and surveillance solutions, having spun off its maritime business.
Very Brief History: Established in 1814 in Kongsberg, Norway, Kongsberg Gruppen ASA has a long history rooted in industrial and defense manufacturing. Over two centuries, it has evolved into a global technology powerhouse, particularly specializing in advanced systems for the maritime, defense, and aerospace sectors. Key milestones include the continuous development of its defense capabilities, becoming a leader in maritime technology, and more recently, expanding into digital solutions and space applications, including the acquisition of small satellite producer Kongsberg NanoAvionics and the strengthening of its underwater technology base with Naxys Technologies. In April 2026, Kongsberg Maritime was spun off as an independent company, making Kongsberg Gruppen a pure-play defense and advanced technology company.
"Street Stereotype": Kongsberg Gruppen is generally perceived by investors and analysts as a reliable, long-term play on global defense spending and advanced technology. It's often seen as a 'Norwegian proxy for layered defense' due to its significant role in systems like NASAMS and Naval Strike Missiles, and a key player in the growing subsea and space defense markets. The market recognizes its strong backlog, particularly in defense, and its strategic positioning in advanced technology, though some may have previously viewed its diverse portfolio as complex. Post-demerger, it is now considered a pure-play defense and technology company.
Subsidiaries On Linked In*: Kongsberg Defence & Aerospace — LinkedIn: kongsberg-defence-aerospace
Kongsberg Discovery — LinkedIn: kongsberg-discovery
Falkor — Formerly Kongsberg Digital, rebranded in June 2026 and remains a majority-owned subsidiary.
Kongsberg NanoAvionics — LinkedIn: kongsberg-nanoavionics
Kongsberg Satellite Services (KSAT) — LinkedIn: kongsberg-satellite-services
Patria — LinkedIn: patria-oy
Zone 5 Technologies LLC — Acquired in June 2026 and operates as an independent subsidiary.
Customer Sectors & Example Clients: Kongsberg serves a diverse range of customer sectors including global defense, aerospace, and public administration. Specific clients mentioned or credibly inferred include NATO countries, the U.S. Army, Navy, and Air Force, the Norwegian Defense Material Agency, Germany, Canada, Lithuania, Belgium, the Netherlands, Kuwait (via Raytheon), and Ukraine (through donation programs and an MoU with DevDroid). They also serve an unnamed international customer for underwater surveillance and protection.
New Customers / Segments They'Re Targeting: Kongsberg is actively targeting new customers and expanding into new segments, particularly within the defense sector. They are engaging with countries like Canada for the Joint Strike Missile and Belgium and the Netherlands for NASAMS systems. The company is also looking for countries and partners to establish European hubs for high-volume production of missiles, proposing a subscription model to countries for scalable missile production. Furthermore, they are working with Ukrainian and international partners on integrating long-range anti-ballistic missile solutions. Kongsberg is also strengthening its position in select Middle Eastern markets for air defense and anti-drone solutions, and secured a contract for underwater surveillance and protection for an unnamed international customer.
Supply Chain And Sourcing Geographies: Kongsberg operates with a highly international business and a worldwide network of its own businesses and partners. They have a well-established setup in the U.S., including partners, production, and supply chain, and are investing further there, with a new missile factory for Naval Strike Missiles (NSM) and Joint Strike Missiles (JSM) under construction in James City County, Virginia, expected to be fully operational by the end of 2028. They have also opened a new production facility in Norway and have another missile factory under construction in Australia. Additionally, Kongsberg is preparing new establishments, for example, in Poland, and is moving into new facilities in Horten, Norway, in the summer of 2026. The company emphasizes that securing the supply chain is its biggest challenge, and they are working to ensure multiple sources and build buffer capacity to mitigate disruptions.
Sales Geographies And Expansion Plans: Kongsberg has a significant global presence, with sales and operations across Norway, Europe, North America, South America, Asia, Australia, and Africa. They are actively expanding their sales reach, particularly in the defense sector. Recent sales include Joint Strike Missiles (JSM) to Canada, Germany, and the U.S., and the NASAMS air defense system to Kuwait through the U.S. Foreign Military Sales program. The company is deeply involved in dialogues on European and Transatlantic security, indicating a continued focus on European defense markets, including establishing European hubs for high-volume missile production.
How Key Themes May Help/Hurt: The buildout of 'Modern Warfare '26: Military Connectivity & Tactical Networks' is highly beneficial for Kongsberg. The company's core business in air defense (NASAMS), missiles (JSM, NSM, Zone 5's Rusty Dagger and White Spike), and anti-drone capabilities directly aligns with the theme's focus on missile interception, drones and drone defense, and electronic warfare. The acquisition of Zone 5 for high-volume, cost-effective missiles directly addresses the theme's emphasis on 'cost-per-interception' for countering cheap drone swarms. Their work on integrating long-range anti-ballistic missile solutions (ESMA) also fits the 'Golden Dome' initiative for multi-layer missile defense. Increased defense spending from NATO countries, as highlighted in the transcript, directly benefits Kongsberg's market. However, the theme also highlights 'Significant supply chain vulnerabilities and industrial capacity constraints', which Kongsberg acknowledges as its 'biggest challenge' and is actively working to mitigate.

3 Main Long-Term Bull Details

Surging Global Defense Spending and Record Backlog: Global defense spending is experiencing a generational surge, directly benefiting Kongsberg's core defense and technology segments. The company reported a record order intake of NOK 17.1 billion in Q2 2026, pushing its total order backlog to a record NOK 158 billion, providing strong long-term revenue visibility.
Strategic Expansion in Missile Production and Capabilities: Kongsberg's advanced missile systems, including NSM and JSM, are experiencing escalating demand from allied nations. The company is significantly expanding its production capacity with new missile factories under construction in the U.S. (Virginia) and Australia, alongside existing and new facilities in Norway and plans for Poland. The acquisition of Zone 5 adds complementary capabilities in high-volume, cost-effective strike and air defense missiles, further strengthening its product portfolio and market reach.
Ambitious Long-Term Growth Targets and Innovation: Kongsberg has set ambitious financial targets to triple revenues to NOK 100 billion by 2029 and NOK 150 billion by 2033, driven by strong market positions and continuous innovation. The company's ability to act as both a prime contractor and an agile innovator, combined with its internal R&D capabilities and strategic partnerships, positions it well to meet evolving defense needs and achieve these long-term goals.

3 Main Long-Term Bear Details

Supply Chain Vulnerabilities and Production Ramp-up Risks: Kongsberg identifies securing the supply chain as its biggest challenge, necessitating efforts to ensure multiple sources and build buffer capacity. The rapid scaling of production, particularly for newly acquired entities like Zone 5, is expected to impact margins, with single-digit profit margins anticipated for Zone 5 for the next 12 to 24 months before normalizing.
Fluctuating Profitability Due to Project Mix: Profitability can fluctuate due to the mix of projects, with deliveries to certain customers (e.g., Norwegian donation programs to Ukraine) potentially yielding lower margins compared to large export contracts. This variability in product and project mix can lead to short-term financial volatility and challenges in consistently achieving margin targets.
Political and Legislative Uncertainties: Despite strong demand, Kongsberg remains exposed to political and legislative uncertainties surrounding defense budgets and export licenses. The revocation of an export license to Malaysia, for example, had IFRS impacts, highlighting the potential for external factors to affect financial performance.

Competitors And Differentiation: Kongsberg operates in highly competitive markets. Competitors include major defense contractors such as Lockheed Martin, Northrop Grumman, Safran, Elbit Systems, Thales, Leonardo, Rheinmetall, and Saab. Kongsberg differentiates itself by its unique position as a technology powerhouse that combines civilian business (Discovery division) with established defense solutions, enabling internal innovation. They are large enough to be a prime contractor to major global customers while remaining agile enough to move fast and drive rapid innovation, both internally and with partners like Raytheon for the NASAMS system. The recent acquisition of Zone 5 further strengthens their differentiation by adding capabilities in high-volume, cost-effective missile production, complementing their high-end missile portfolio.
Recent Performance & What The Market'S Focused On: Kongsberg delivered a strong second quarter in 2026, with revenues increasing by 31% to a record NOK 10.4 billion, marking the first time the company reported revenues above NOK 10 billion. Earnings before interest and tax (EBIT) were NOK 1.7 billion, resulting in an EBIT margin of 16.1%. Order intake for the quarter was NOK 17.1 billion, not including a $400 million NASAMS contract to Kuwait, pushing the total order backlog to a record NOK 158 billion. The company completed the acquisition of Zone 5 in June 2026, with three weeks of its operations included in the Q2 results. The market is focused on the company's high activity levels, strong growth in air defense, missiles, and Remote Weapon Station projects, the successful integration and scaling of Zone 5 manufacturing, and the ongoing efforts to secure the supply chain. Investors are also closely watching the progress towards Kongsberg's ambitious long-term revenue targets of NOK 100 billion by 2029 and NOK 150 billion by 2033.

Revenue Segments And Estimated Mix: Defense Systems — Mix: ~49%; Source: Q2 2026 revenues of NOK 5.1 billion; Trend: 53% year-on-year growth; driven by air defense projects and Remote Weapon Stations.
Missiles & Aerostructures — Mix: ~28%; Source: Q2 2026 revenues of NOK 2.9 billion; Trend: 19% year-on-year growth; driven by higher missile production volume, includes three weeks of Zone 5 operations.
Discovery — Mix: ~22%; Source: Q2 2026 revenues of NOK 2.3 billion; Trend: 21% year-on-year growth.
Other activities — Mix: ~1%; Source: Calculated residual from total Q2 2026 revenue of NOK 10.4 billion. Includes Falkor (formerly Kongsberg Digital).; Trend: Contributed positively to EBIT.
Product Brands: NASAMS
Naval Strike Missile (NSM)
Joint Strike Missile (JSM)
HUGIN
Kongsberg NanoAvionics
Meridian Space
Rusty Dagger
White Spike
Paladin
ESMA

Bull / Bear Details

Kongsberg Gruppen ASA, a pure-play defense and advanced technology company, presents a highly compelling investment case as of 2026-07-13. Driven by surging glo

Thesis

Kongsberg Gruppen ASA, a pure-play defense and advanced technology company, presents a highly compelling investment case as of 2026-07-13. Driven by surging global defense spending, its record order backlog in missile and air defense systems, strategic acquisition of Zone 5 for high-volume missile production, and investments in subsea and robotic combat systems position it for sustained, accelerated growth. The bull case is significantly more compelling, underpinned by critical contributions to allied security and ambitious long-term revenue targets.

Bull case

Global defense spending is experiencing a generational surge, directly benefiting Kongsberg's core defense and technology segments. The company reported a record order intake of NOK 17.1 billion in Q2 2026, pushing its total backlog to an unprecedented NOK 158 billion. Key wins include a $400 million NASAMS contract for Kuwait and significant JSM orders from Canada, Germany, and the U.S., underscoring robust demand for its proven systems.
Kongsberg's strategic acquisition of Zone 5, a maker of high-volume, cost-effective missiles, is a game-changer, complementing its high-end missile portfolio and targeting over NOK 10 billion in annual revenue medium-term. This, coupled with new missile factories under construction in the U.S. and Australia, and planned European hubs, significantly expands production capacity. The proposed subscription model for scalable missile production addresses urgent European defense needs.
The company's strategic focus on advanced technology, particularly in subsea, space, and robotic combat systems, provides diversified growth drivers. Kongsberg secured a NOK 200 million contract for underwater surveillance and protection and an MoU with DevDroid for robotic combat systems. Its ambition to integrate long-range anti-ballistic missile solutions (ESMA) further strengthens its full-spectrum air defense offering amidst escalating threats.

Bear case

Despite strong demand, Kongsberg remains exposed to political and legislative uncertainties surrounding defense budgets. While NATO countries announced significant procurements, the final timing and specific allocations of funding can be subject to delays or shifts in priorities. The Q1 2026 earnings per share significantly missed analyst forecasts, highlighting potential short-term financial volatility.
Profitability can fluctuate due to the mix of projects, as deliveries to Norway are subject to profit caps (cost-plus contracts), while export contracts are competitively priced. Management noted lower margins for Ukrainian donation programs and expects single-digit profit margins for Zone 5 for the next 12-24 months during its production ramp-up, impacting overall quarterly EBIT margins.
The defense and advanced technology markets are highly competitive, with both established primes and agile innovators vying for market share. While Kongsberg is expanding production capacity, securing the supply chain remains the "biggest challenge." This, coupled with the accelerating pace of innovation and the need for continuous R&D, could create short-term supply constraints or competitive pressures.

Bull / Bear Case

Bear Case: Despite strong demand, Kongsberg faces significant risks, particularly concerning supply chain vulnerabilities, which management identifies as its "biggest challenge." The rapid scaling of production, especially for the newly acquired Zone 5, is expected to depress profit margins to single digits for the next 12-24 months, impacting overall EBIT. Profitability can also fluctuate due to project mix, with lower margins on certain contracts like Ukrainian donation programs. The defense market is highly competitive, and while Kongsberg is expanding, securing the supply chain and managing the accelerating pace of innovation could lead to short-term constraints or competitive pressures. Political and legislative uncertainties surrounding defense budgets and export licenses also pose ongoing risks to financial performance.
Bull Case: Kongsberg Gruppen ASA presents a highly compelling investment case driven by a generational surge in global defense spending, directly benefiting its core defense and technology segments. The company reported a record Q2 2026 order intake of NOK 17.1 billion, pushing its total backlog to an unprecedented NOK 158 billion, providing strong long-term revenue visibility. Strategic acquisitions like Zone 5, a game-changer for high-volume, cost-effective missile production, are expected to generate over NOK 10 billion in annual revenue medium-term. This, coupled with new missile factories under construction globally and planned European hubs, significantly expands production capacity. The company's ambitious targets to triple revenues to NOK 100 billion by 2029 and NOK 150 billion by 2033, alongside its unique position as both a prime contractor and agile innovator, underscore a robust growth trajectory.
More Compelling & Why: Bear. Given Kongsberg's EV/EBITDA of approximately 29.2x [3], which is substantially higher than the Aerospace & Defense industry average of around 19x-20x [11, 21], the bear case is more compelling. This premium valuation appears stretched considering the near-term operational challenges, specifically the anticipated single-digit profit margins for the newly acquired Zone 5 for the next 12-24 months and management's acknowledgment that securing the supply chain remains the "biggest challenge." My view would flip to bullish if Kongsberg demonstrates faster-than-anticipated margin normalization for Zone 5 and provides concrete evidence of mitigating supply chain risks, such as securing long-term, multi-source agreements, while maintaining its ambitious growth trajectory.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Total Order Intake and Backlog Growth	A record order backlog of NOK 158 billion provides strong revenue visibility and underpins Kongsberg's ambitious long-term growth targets. Continued robust order intake and efficient backlog conversion are essential for sustained growth.	Track Kongsberg's reported total order intake and total order backlog in subsequent quarterly earnings. Monitor the book-to-bill ratio and the portion of the backlog scheduled for delivery in the next 12-24 months.	Bullish if total order intake continues to exceed NOK 17.1 billion and the total backlog grows beyond NOK 158 billion, maintaining a book-to-bill ratio above 1.0x. Bearish if order intake or backlog stagnates or declines for consecutive quarters.	Kongsberg Gruppen ASA (KOG.OL) quarterly earnings reports and presentations.	Defense industry news sites (e.g., Janes, Defence News) for reports on major contract awards to Kongsberg or its partners.	Bloomberg Terminal: KOG.OL order backlog estimates and analyst consensus revisions.
Progress on European High-Volume Missile Production & Subscription Model Adoption	Establishing European manufacturing hubs for Zone 5 missiles and the adoption of a subscription model are strategic initiatives to meet urgent high-volume demand, enhance supply chain resilience, and secure long-term, scalable revenue streams in Europe.	Look for announcements of definitive agreements with specific European countries or industrial partners for establishing Zone 5 missile manufacturing hubs. Monitor for any pilot program announcements or formal adoption of the subscription model by a country.	Bullish if Kongsberg announces concrete partnerships or agreements for European Zone 5 production, or if a country formally commits to the subscription model. Bearish if there are significant delays in establishing European hubs or if the subscription model sees limited traction.	Kongsberg Gruppen ASA (KOG.OL) press releases, quarterly earnings calls, NATO/EU defense procurement announcements, industry conferences.	Google Trends: Search for 'Kongsberg subscription missile', 'European defense production hub'. EU defense agency news.	Stratfor Worldview: Geopolitical analysis reports on European defense industrial base developments and procurement strategies.
Zone 5 Revenue Contribution and Margin Progression	The acquisition of Zone 5 is a 'game changer' expected to generate over NOK 10 billion in annual revenue in the medium term. Its initial single-digit profit margins will impact overall company profitability, making its progression critical for investor sentiment.	Monitor Kongsberg's quarterly earnings reports for specific revenue contributions from Zone 5 and updates on its EBIT margin. Watch for any announcements of significant new contracts secured by Zone 5.	Bullish if Zone 5's revenue contribution exceeds initial expectations or if its EBIT margin shows a faster-than-anticipated improvement towards normal Kongsberg levels. Bearish if revenue growth is slower or margins remain depressed beyond the 12-24 month guidance.	Kongsberg Gruppen ASA (KOG.OL) quarterly earnings reports and presentations. Company press releases.	USASpending.gov: Search for U.S. government contract awards related to 'affordable mass' missiles or 'Zone 5'. Industry news on high-volume missile production.	Thinknum: Zone 5 employee headcount changes (as a proxy for scaling production and integration progress).
New Major NASAMS System Contract Awards	NASAMS is a critical air defense system, and new contracts, particularly from NATO allies like Belgium or through U.S. Foreign Military Sales (FMS) programs, validate strong demand and significantly boost the order book.	Look for formal announcements of definitive contracts for NASAMS systems, including specific customer countries (e.g., Belgium, other European nations) and the total contract values. Follow up on Belgium's stated intention to acquire multiple NASAMS systems.	Bullish if Belgium's intention translates into a definitive contract, or if other NATO/allied countries announce new NASAMS procurements with a value exceeding $100 million. Bearish if announced intentions are significantly delayed or cancelled.	Kongsberg Gruppen ASA (KOG.OL) press releases, quarterly earnings calls, NATO and national defense ministry announcements, defense industry news outlets.	Google News alerts for 'NASAMS contract', 'Kongsberg NASAMS'. Official government procurement websites (e.g., U.S. DoD contract awards).	S&P Global Market Intelligence: Defense contract database for air defense systems.
Further Joint Strike Missile (JSM) Contract Wins	The JSM is a high-value, advanced missile system. Continued orders from existing customers (Germany, U.S.) and new customers (Canada) demonstrate sustained demand, expand market penetration, and contribute substantially to the Missiles & Aerostructures backlog.	Monitor for announcements of additional JSM orders, specifying customer countries, the number of missiles, and the associated contract values. Pay attention to any indications of new countries selecting JSM.	Bullish if additional countries beyond Canada select JSM, or if existing customers place further repeat orders exceeding NOK 2 billion in a quarter. Bearish if there are no new significant JSM orders announced in subsequent quarters, indicating a slowdown in demand.	Kongsberg Gruppen ASA (KOG.OL) press releases, quarterly earnings calls, defense industry news.	USASpending.gov: Search for U.S. government contract awards to Kongsberg or Raytheon related to JSM. Defense news aggregators.	GovWin IQ: Federal contract opportunities and awards for missile systems.

Key Reported Metrics, Reratings Triggers & Results3 rows

Total Revenue growth indicates the company's overall sales performance and its ability to convert its record order backlog into actual sales, crucial for achiev

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Total Revenue (YoY Growth)	31%	Total Revenue growth indicates the company's overall sales performance and its ability to convert its record order backlog into actual sales, crucial for achieving ambitious long-term targets.	Total Revenue (YoY Growth) needs to hit 30% or higher, significantly exceeding the current 26% and analyst consensus forecasts of 17-22% for the next three years. This would demonstrate accelerating growth and a clearer path towards the company's ambitious long-term revenue targets of NOK 100 billion by 2029 and NOK 150 billion by 2033.	Achieving 30%+ YoY revenue growth would validate Kongsberg's strategic focus on defense and advanced technology post-demerger. It would signal robust execution on its record order backlog and accelerate progress towards ambitious long-term targets, justifying a higher valuation in a competitive market by demonstrating superior operational performance and market capture.
Defense Systems Revenue (YoY Growth)	53%	As the primary earnings driver post-spin-off, this metric highlights Kongsberg's success in delivering advanced defense solutions, particularly in air defense, missiles, and remote weapon systems, amid rising geopolitical tensions.	Defence Systems Revenue (YoY Growth) needs to hit above 50% for the stock to rerate higher. This would represent an acceleration from the 45% growth reported in Q1 2025 for the segment, exceeding the company's overall guidance for 2026 revenue growth to surpass 2025 levels, and demonstrating a significant beat against the broader Aerospace & Defense industry's forecast of 11% annual growth.	This metric directly validates Kongsberg's strategic pivot to a pure-play defense company, showcasing its ability to convert a record backlog into accelerating revenue. Exceeding 50% growth would signal robust demand for its advanced systems and strong execution, justifying a premium valuation amidst surging global defense spending.
Order Intake (YoY Growth)	53%	Order intake is a key forward-looking indicator for a defense contractor, signaling future revenue streams and sustained demand for Kongsberg's products amidst increasing global defense spending.	For Kongsberg Gruppen ASA (KOG.OL) to rerate higher, the Order Intake (YoY Growth) metric for Q2 2026 needs to hit at least 50%, coupled with a book-to-bill ratio exceeding 1.5x. This would demonstrate sustained robust demand and significant backlog expansion, building on the exceptional Q1 2026 order intake of NOK 27 billion and countering recent downward revisions in full-year 2026 revenue estimates.	Hitting this threshold matters as it would signal that the generational surge in global defense spending and demand for Kongsberg's advanced systems are sustained and broad-based, not reliant on singular large contracts. It would validate the long-term investment thesis, provide strong revenue visibility, and likely lead to upward revisions in analyst estimates, driving a positive rerating by increasing confidence in the company's ability to capitalize on the strong market environment.

Key Questions

Given the record NOK 158 billion order backlog and significant Q2 2026 JSM and NASAMS contract wins, can Kongsberg Defence & Aerospace continue to secure major

No data for this section.

Earnings Transcript Summary2 rows

2026-07-13 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Scaling production capacity and delivering on backlog: Management emphasized high activity levels, signing significant new contracts, and making key deliveries, driving record revenues and a backlog of NOK 158 billion. They are continuously working on scaling operations and ramping up production capacity to meet demand. 2. Strategic acquisitions and facility expansion: The acquisition of Zone 5 (a maker of high-volume missiles) is seen as a potential game-changer, complementing existing capabilities and aiming for significant future revenue. New missile factories are under construction in the U.S. and Australia, and new establishments are being prepared in Europe. 3. Achieving ambitious long-term financial targets and securing the supply chain: Kongsberg shared new financial ambitions to triple revenues to NOK 100 billion by 2029 and NOK 150 billion in 2033. Management is confident in realizing these ambitions, but acknowledges that securing the supply chain is the biggest challenge and a daily focus.	The overall takeaway of the call is that Kongsberg delivered a record-breaking second quarter in 2026, with revenues exceeding NOK 10 billion for the first time and a record order backlog of NOK 158 billion. The company is experiencing high activity and strong demand across its divisions, particularly in air defense, missiles, and Remote Weapon Stations. Strategic acquisitions like Zone 5 and ongoing facility expansions are key to meeting future demand and achieving ambitious long-term growth targets. Management's tone was confident and positive, highlighting strong market positions and operational execution, but also realistic about the challenges of securing the supply chain in a high-demand environment.	In Q1 2026, Kongsberg's total revenue increased by 26% compared to Q1 2025. Defense Systems revenue grew by 45%. Missiles & Aerostructures revenue increased by 22%. Discovery revenue grew by 8%. Patria's year-over-year revenue growth for Q1 2026 was not explicitly stated in the provided Q1 2026 earnings summaries, though Kongsberg's share of Patria's net profit increased by 51% in Q1 2026.	1. Margin effects from Ukraine donations and Defense Systems decline: Analysts inquired about quantifying the margin effect of Ukraine donations and the year-over-year decline in Defense Systems margins. Management responded that margins are a combination of project and product mix, and while Norwegian donation programs to Ukraine had lower margins, the Defense Systems margin development is natural due to project mix and successful production ramp-up. They declined to provide specific quantifications due to ongoing negotiations. 2. Subscription model for missile production: Analysts asked if the subscription model for missile production had been proposed to countries and what the responses were. Management confirmed they are in dialogue with several countries, noting that there is definite interest because a different business model is needed to handle high-volume production (tens of thousands per year), and they expect a very positive outcome in Europe. 3. Confidence and worries regarding ambitious growth targets: Analysts questioned what gave management the greatest confidence in achieving their ambitious growth targets (NOK 100 billion by 2029, NOK 150 billion by 2033) and what worried them most. Management cited the NATO summit confirming the need for defense investments and strong customer demand as confidence boosters. Their biggest worry remains securing the supply chain, emphasizing continuous work on ensuring multiple sources and buffer capacity.	Total revenue increased by 31% to NOK 10.4 billion. Defense Systems grew revenues by 53% (from NOK 3.3 billion to NOK 5.1 billion). Missiles & Aerostructures delivered a top-line growth of 19% (from NOK 2.4 billion to NOK 2.9 billion). Discovery grew revenues by 21%. Patria, an associated company not included in Kongsberg's APMs, reported revenue growth of 42%.

2025-05-08 · 2025Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Long-term growth and strategic positioning in key markets: Management is focused on achieving NOK120 billion revenues by 2033, being a frontrunner in maritime decarbonization, and playing a critical role in European and Transatlantic security. This includes investments in new production facilities in the U.S., Norway, and Australia, and strategic acquisitions like Naxys Technologies. 2. Adapting to a rapidly changing and uncertain geopolitical landscape: Management emphasizes agility, adaptability, cross-border cooperation, and a global footprint to navigate current uncertainties around international framework conditions. They are actively engaging with EU and U.S. stakeholders on defense and security. 3. Strong operational execution and backlog growth across all business areas: The company reported a solid start to 2025 with over NOK20 billion in order intake, and all business areas achieved a book-to-bill ratio above one, indicating increasing order backlogs. This includes strong demand in new building and aftermarket for Maritime, underwater technologies for Discovery, and significant missile and air defense orders for Defense & Aerospace.	The overall takeaway of the call is that Kongsberg delivered a very strong first quarter in 2025, marked by significant order intake and robust revenue growth across all key segments. The company is confidently navigating a complex and uncertain geopolitical environment by leveraging its strategic market positions in maritime decarbonization, global trade, and defense/security. Management's tone was confident and positive, acknowledging global uncertainties but emphasizing the company's agility, strategic investments, and strong operational execution as foundations for continued long-term growth, supported by a substantial order backlog.	Kongsberg Maritime: 23% year-on-year growth in Q4 2024. Kongsberg Defense and Aerospace: 10% year-on-year growth in Q4 2024. Kongsberg Discovery: 8% year-on-year growth in Q4 2024. Kongsberg Satellite Services: 0% year-on-year growth in Q4 2024. Patria: Specific Q4 2024 y/y revenue growth percentage was not explicitly stated in the Q4 2024 earnings transcript, though growth was noted due to increased vehicle deliveries.	1. Kongsberg Defense & Aerospace Outlook and Project Mix Impacting Profitability: Analysts questioned how project mix affects profitability. Management explained that deliveries to Norway are subject to a profit cap (cost-plus), while export contracts are competitively priced with different, often higher, margins. They cited a low-margin development contract (supersonic strike missile) versus higher-margin export projects as examples. 2. Impact of Tariffs: Analysts inquired about the effect of tariffs. Management responded that most U.S. defense exports are duty-free under FAR regulations. For other products, contracts typically place tariffs on the customer. They also highlighted Kongsberg's extensive global footprint as a means to adapt to changing tariff environments and mentioned expanding their U.S. supply chain. 3. European Boosting of Military Spending and its Impact on Order Intake/Results: Analysts asked when increased European military spending would translate into orders and results. Management stated they are already seeing the impact, with significant programs coming online. They emphasized Kongsberg's strong presence and supply chain in Europe and their involvement in EU and Norwegian defense programs, noting that while the major impact will take time, these programs are active.	Kongsberg (total adjusted): 19% year-on-year increase. Kongsberg Maritime: 25% year-on-year growth. Kongsberg Defense and Aerospace: 22% year-on-year growth (adjusted for extraordinary deliveries in Q1 2024). Kongsberg Discovery: 29% year-on-year increase. Kongsberg Satellite Services: 4% year-on-year increase. Patria: 5% revenue growth compared to last year.

Transcript TidbitsTable

No data for this section.

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-07-13	Kongsberg reported record Q2 2026 revenues of NOK 10.4 billion and a NOK 158 billion backlog, driven by strong defense demand and significant JSM/NASAMS contracts. The strategic Zone 5 acquisition, however, is expected to depress near-term margins. Despite ambitious long-term targets, the stock's -5.65% return (underperforming SPY) suggests market focus on immediate margin pressures and persistent supply chain challenges.	Earnings Transcript	Negative		-5.65% (vs SPY: -6.01%)