Q2 2024: 21 per cent growth and EBIT of NOK 1.45 billion in the quarter

«We have delivered another solid quarter. Operating revenues increased, and profitability was good. We are experiencing high demand for our solutions, both from civilian- and defence customers," says President and CEO Geir Håøy of KONGSBERG.

• All business areas delivered growth
• Book/bill at 1.49 and the order backlog is growing
• New missile factory opened in June

Order intake in the second quarter of 2024 was NOK 17.3 billion, corresponding to a book/bill of NOK 1.49. Revenues were NOK 11.59 billion compared to NOK 9.61 billion in the second quarter of 2023, an increase of 21%.

EBITDA was NOK 1.82 billion, up from NOK 1.38 billion in the second quarter of 2023 and the EBITDA margin was 15.7% compared to 14.4% in the second quarter of 2023. EBIT was NOK 1.45 billion, up from NOK 1.04 billion in the second quarter of 2023 and the EBIT margin was 12.5%, up from 10.8% in the second quarter of 2023.

All business areas deliver growth

All business areas increased operating revenues in Q2 compared with the corresponding quarter in 2023. The main drivers for the growth were Kongsberg Maritime and Kongsberg Defence & Aerospace, which increased operating revenues by NOK 1.00 billion and NOK 0.96 billion, respectively.

The order backlog is growing

KONGSBERG signed contracts worth more than NOK 17.3 billion in Q2, and the order backlog increased to NOK 95.6 billion. Kongsberg Defence & Aerospace signed two new contracts for the NASAMS air defence system in the quarter. The first was an expansion and modernisation of Spain's existing system and the second was a contract for air defence to Norway, in line with the plans presented in the Norwegian Armed Forces' long-term plan that was approved by the Norwegian Parliament in the quarter. An important deal was also signed for the delivery of the Joint Strike Missile (JSM) to the United States Air Force.

«The US Air Force is by far the largest user of F-35 fighter jets and their choice of JSM could be a significant revenue driver for the defence area in the years to come," says Håøy.

Kongsberg Maritime increased its order intake from both new vessels and its existing fleet. The business area is experiencing great demand for emission-reducing and emission-free solutions. Kongsberg Maritime has a diversified order intake from different vessel types. The focus on decarbonisation leads to an increased need for technology on the vessels, which increases Kongsberg Maritime's scope and content of deliveries.

New missile factory opened in June

In recent years, KONGSBERG has invested in increased capacity, and in June the new and modern missile production facility, Nexus, opened.

«The growth phase we are in requires capacity. Over the past few years, we have invested significantly, both in new employees, facilities and further development of our processes. The new missile factory in Kongsberg, Nexus, will take missile production to the next level and ensure delivery of larger volumes in the years ahead. The order backlog and strong demand for our missile technology make me confident of high activity at Nexus," says Håøy.

KONGSBERG 2033: NOK >120 billion revenues

KONGSBERG's new growth ambition was announced at the Capital Markets Day in June: KONGSBERG will have sales of more than NOK 120 billion in 2033 with an EBIT margin of more than 15 per cent.

"The markets in which we operate are experiencing solid growth and transformation, and our positions have never been stronger. The solidity of the current portfolio and the long-term nature of demand provide a foundation for the company's new ambitions. Our ambition is to triple our revenues over the next ten years. This is ambitious, but by continuing to and developing the company, this is absolutely a realistic goal," Håøy concludes.

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