Kongsberg orders and profits soar as demand for defence systems increases

Norway's Kongsberg announced on Thursday that its first-quarter order intake and profit soared, driven by the demand for its air defence and missile systems. This is at a moment when European nations are increasing their defence spending while continuing to support Ukraine.

The order intake for the group's defence and aerospace division, which is used by the U.S. military and many European nations, increased 63% from the previous quarter to 20,74 billion Norwegian crowns (about $2 billion).

Last year, the division, which is Kongsberg’s second largest, generating around 40% of its revenues, secured critical equipment deliveries to Ukraine, while also contributing towards the completion of F-16 jet fighters and training Ukrainian soldiers on their systems.

The order intake of the unit has more than doubled since 2024, due to a boom in demand for military equipment as a result of the conflict in Ukraine and the Middle East.

In a recent statement, Kongsberg CEO Geir Haoy stated that the demand for air and missile defence systems had contributed to an increase in order backlog. This was a major driver of our capacity expansions.

In the first quarter, Kongsberg increased its operating profit before depreciation (EBITDA), by 81%. This amounted to 3,29 billion Norwegian crowns.

Haoy stated that the growth was also fueled by solutions for newbuildings and aftermarket services within the maritime industry, as well as the delivery of submarine technology. Maritime, Kongsberg's largest division, generated about half of the company's revenue last year.

(source: Reuters)