Kongsberg Q1 Revenue Jumps 26% But Misses Forecasts

First Quarter Financial Highlights

Norway's Kongsberg Gruppen announced a first-quarter revenue of NOK 9.20 billion, a 26% increase year-over-year. However, this figure fell short of the NOK 11.36 billion expected by analysts. The defence technology firm's EBIT grew by 55% to NOK 1.54 billion, achieving an EBIT margin of 16.6%.

Record Orders Amid Geopolitical Tensions

The company reported a significant surge in demand, with order intake more than doubling to NOK 27 billion. A substantial NOK 16 billion contract to supply counter-unmanned aerial systems to Poland was a primary contributor. Kongsberg attributes this growth to rising geopolitical tensions and increased defence spending among NATO member nations, particularly for weapon stations and counter-drone systems.

Strong Outlook for Future Growth

Looking ahead, Kongsberg projects that revenue growth for 2026 will exceed the levels seen in 2025. This optimistic forecast is based on what the company describes as record-high demand for its defence solutions across its entire product portfolio, driven by sustained global defence investments.

Summary

While Q1 revenue did not meet market expectations, Kongsberg's performance was marked by strong profitability and a historic level of new orders. The robust order backlog provides a solid foundation for anticipated future growth, reflecting the current high-demand environment for defence technology.

FAQ

Q: What were Kongsberg's key financial results for Q1?
A: The company reported revenue of NOK 9.20 billion, marking a 26% increase, and an EBIT of NOK 1.54 billion, a 55% rise year-over-year.

Q: What was the main reason for the massive increase in order intake?
A: The primary driver was a NOK 16 billion contract with Poland for counter-drone systems, amid strong overall demand for defence products.

Q: What is Kongsberg's revenue guidance?
A: Kongsberg expects revenue growth in 2026 to be higher than in 2025, fueled by record demand.

Source: Investing.com