Company Reports

Kongsberg Gruppen has completed the spinoff of Kongsberg Maritime, creating a pure-play defense and technology company. The separation removes civil maritime exposure and sharpens strategic focus on defense, discovery, and digital, aligning capital allocation and growth priorities with structurally stronger end markets.

Kongsberg reported a 31% increase in revenue year on year to NOK 10.4 billion, broadly in line with consensus. EBIT of NOK 1.67 billion and a 16.1% margin missed the 17% the market expected. Order intake of NOK 17.1 billion lifted the backlog to a record NOK 158 billion. Guidance was reaffirmed.

Kongsberg reported revenue of NOK 9.2 billion (26% year on year), EBIT of NOK 1.5 billion (55%), and an EBIT margin of 16.6%, supported by strong air‑defense and missile project execution and high activity across all divisions.

Kongsberg Gruppen has completed the spinoff of Kongsberg Maritime, creating a pure-play defense and technology company. The separation removes civil maritime exposure and sharpens strategic focus on defense, discovery, and digital, aligning capital allocation and growth priorities with structurally stronger end markets.

Kongsberg Gruppen began trading ex-demerger on April 23, with Kongsberg Gruppen opening around NOK 333 and Kongsberg Maritime around NOK 66, following the 1:1 distribution of maritime shares.

Kongsberg Gruppen has completed the spinoff of Kongsberg Maritime, creating a pure-play defense and technology company. The separation removes civil maritime exposure and sharpens strategic focus on defense, discovery, and digital, aligning capital allocation and growth priorities with structurally stronger end markets.

By the end of 2025, Kongsberg Gruppen had formally demerged Kongsberg Maritime (47% of total revenue), reporting it as a discontinued operation ahead of its planned separate listing. The transaction reflects a strategic decision to clearly separate the group’s civil maritime exposure from its defense-led and technology-led growth platform, improving transparency and allowing each business to pursue capital allocation and strategic priorities aligned with its end markets.

Kongsberg Gruppen reported 2025 revenue growth of 17% and EBIT margin of about 14%, excluding the gain from the steering gear and rudder divestment, supported by strong defense deliveries, resilient maritime performance, and a record order backlog providing high revenue for the next two years.

European defense stocks rose on Jan. 8 after President Donald Trump called for a roughly 66% increase in the 2027 US defense budget, alongside renewed geopolitical risk from Washington’s rhetoric on Greenland.

Reports of the US-driven Russia-Ukraine peace deal triggered a downturn in European defense stocks, with names under our coverage down between 10%-20% since October highs.

Kongsberg Gruppen's revenue rose 12% year on year, driven by a 38% surge in defense and aerospace, with 15.2% group EBIT margin for the quarter. The key highlight was the plan to demerge Kongsberg Maritime, creating a focused defense and discovery group and stand-alone maritime technology pure play.

Kongsberg Gruppen maintains a solid balance between its civil and defense segments—the first-half 2025 revenue split stands at 46% maritime (civil) and the rest mainly from defense, with both segments backed by robust order books and steady aftermarket growth.

European defense stocks fell sharply after US President Donald Trump met with Russian President Vladimir Putin in Alaska and with Ukrainian President Volodymyr Zelenskyy in Washington. Markets linked the selloff to media reports of a potential ceasefire and US-led deals.

NATO set a new defense spending target of 5% of GDP, with 3.5% allocated to core defense and implementation shifted from 2032 to 2035. The agreement places renewed emphasis on European joint procurement as part of a broader push for defense integration.

On June 13, Israel launched a series of strikes against Iranian facilities and personnel targeting its nuclear enrichment and armament programs. Shares of global defense contractors appreciated as much as 4% in early trading in reaction to the news.

Wide-moat Kongsberg Gruppen delivered a strong first quarter, with revenue rising 19% year on year to NOK 14.6 billion, and adjusted EBIT increasing 26% to NOK 1.84 billion, corresponding to a margin of 13.6%, up 80 basis points from the same period last year. All divisions posted growth, with margins expanding across the board.

Kongsberg Gruppen maintains a healthy balance between its civil (60% of revenue) and defense sectors (40% of the revenue). We believe that the company has a positive outlook, supported by strong civil and defense order backlogs and increasing aftermarket business.

While it is still too early to fully assess the implications of the proposed tariffs on the defense sector, it's important to consider the US' role in the global defense trade. The US remains a net exporter of military equipment, accounting for roughly 43% of global arms exports between 2021 and 2023 (based on SIPRI TIV data), while representing just 3% of global arms imports over the same period. Although the US defense industry is largely self-sufficient in end-product manufacturing, it remains exposed to risks tied to critical raw material imports—such as gallium, yttrium, and tantalum—which are vital for systems like fighter jets, helicopters, armored vehicles, and precision munitions.

Kongsberg Gruppen delivered strong full-year results, meeting expectations. We are increasing our fair value estimate by 3% to NOK 1,270.

Kongsberg Gruppen maintains a healthy balance between its civil (60% of revenue) and defense sectors (40% of the revenue). We believe that the company has a positive outlook, supported by strong civil and defense order backlogs and increasing aftermarket business.