27 percent growth for Kongsberg Group

– We delivered another strong quarter with operating income of NOK 9.6 billion and operating profit of NOK 1.0 billion. The order backlog has increased to NOK 68.1 billion, and we continue to support growth. We see significant opportunities ahead, which gives us hope that the order backlog will grow further, says Geir Håøy, CEO of Kongsberg Gruppen.

In comparison, the industrial group had revenue of NOK 7.6 billion and an operating profit of NOK 0.7 billion in the second quarter of last year.

In the second quarter, all business areas of Kongsberg Gruppen increased their income by more than 20 percent compared to the same period last year.

There should be more staff

Kongsberg Maritime increased activity in both newbuilding and the aftermarket, delivering 24 percent growth, the quarterly report said. Kongsberg Defense & Aerospace increased its operating income by 29 percent, driven mainly by missile and air defense.

Kongsberg Discovery grew by 25 percent, primarily driven by increased activity linked to deliveries of the autonomous underwater vehicle Hugin, while Kongsberg Digital’s 55 percent growth was driven by continuous releases of digital solutions, which also generate recurring revenue.

– Such a growth rate requires both good management and planning, and considerable work has been done across the group to scale the business to the increased activity. Håøy says that this will continue and that Kongsberg Gruppen will be in the market to employ a significant number of people in the coming years.

– We also invest in new and efficient production and maintenance buildings. This winter we started the construction of the new missile factory, which will be completed in the summer of 2024, and in June this year we decided to invest about NOK 500 million in a new depot to maintain the hulls of the Norwegian F-35. Airplane. From the new depot, maintenance can be done on other countries’ F-35s, he continued.

More for security

Kongsberg Gruppen has had strong growth for several quarters in a row. That growth is expected to continue in the future. In an interview in Finansavsien on Wednesday, Danske Bank manager Lars Erik Moen says:

“The war in Ukraine has changed the market going forward, and people will be more focused on defense. Because of the long order processes in the defense industry, countries have yet to start ordering new systems. It’s going to come.”

At the end of the first half of the year, the group’s order backlog was NOK 68.1 billion. Of this, 16.3 billion should already be disbursed this year.

“Additionally, Kongsberg Gruppen sees significant demand from civilian and military customers for the group’s broad technology portfolio,” the report said.

– We have never had strong market positions in established and new markets. This gives me confidence that the Kongsberg Group will continue the growth journey we are on, says the CEO.