Kongsberg’s orders and revenue soar on defence techniques demand

By Marta Frackowiak

(Reuters) -Norway’s Kongsberg stated on Thursday its order consumption and income soared within the first quarter, pushed by demand for missiles and air defence techniques at a time when European nations are stepping up their defence spending.

Kongsberg noticed its quarterly order consumption rise 63% from a yr earlier to twenty.74 billion Norwegian crowns ($2 billion), half of which was for the defence and aerospace unit.

Its shares rose 6% in early buying and selling and have been amongst prime performers on Europe’s benchmark STOXX 600 index as of 0809 GMT.

“We see already the influence of the bigger defence spendings in Europe,” Kongsberg’s CEO Geir Håøy stated throughout a convention name with analysts and journalists, although he added it will take time for the corporate to see a significant influence from that.

European nations are bolstering their defence budgets and reaffirming their help for Ukraine, involved that the U.S. beneath President Donald Trump could now not be as invested in Europe’s safety.

Håøy additionally stated Kongsberg was already nicely established in Europe, which is its most vital market.

The corporate’s exports to the US consist largely of defence merchandise for the U.S. armed forces, which fall beneath the Protection Federal Acquisition Regulation Complement (DFARS) rules and as such are topic to responsibility free imports, finance chief Mette Toft Bjørgen stated within the name.

The defence and aerospace division, Kongsberg’s second greatest making up round 40% of its income, final yr secured deliveries of important tools to Ukraine whereas additionally contributing to the completion of F-16 fighter jets and coaching of Ukrainian troopers on its techniques.

The unit’s order consumption greater than doubled over 2024 amid surging demand for defence tools.

“In recent times, the demand for missile and air defence techniques has contributed to a major enhance within the order backlog and has been an vital driver for our capability expansions,” Håøy stated within the earnings assertion.

Kongsberg’s working earnings earlier than depreciation and amortisation (EBITDA) grew 81% to three.29 billion crowns within the first quarter, additionally boosted by gross sales development in its maritime division which generated round half of its income final yr.

($1 = 10.3497 Norwegian crowns)

(Reporting by Marta Frąckowiak in Gdansk; Enhancing by Milla Nissi-Prussak)