Q2 2026 Kongsberg Gruppen ASA Earnings Call Transcript
Key Points
- Kongsberg Gruppen ASA (NSKFF) reported a 31% increase in revenues, reaching NOK10.4 billion, marking the first time revenues surpassed NOK10 billion.
- The company achieved a record high order backlog of NOK158 billion, with significant new contracts, including NOK11 billion in orders for the Joint Strike Missile.
- The acquisition of Zone 5 is seen as a potential game changer, expected to generate annual revenue of more than NOK10 billion in the medium term.
- Kongsberg is expanding its production capabilities with new facilities in the US, Australia, and Poland, and moving into new facilities in Horten, Norway.
- The company is exploring innovative business models, such as a subscription model for missile production, to meet high-volume production demands efficiently.
- The Defense Systems division experienced a decline in EBIT margin from 19.6% to 17.7% due to varied product and project mix, including lower margins from non-Norwegian donation projects to Ukraine.
- The Discovery division's EBIT margin decreased from 17.6% to 15.3%, driven by a less favorable product mix and significant investments impacting margins.
- The cash position decreased significantly from NOK16.4 billion to NOK4.9 billion, primarily due to dividend payments, the acquisition of Zone 5, and bond repayment.
- There are ongoing challenges in securing the supply chain, which is crucial for maintaining production and meeting growth targets.
- The integration of Zone 5 is expected to result in single-digit profit margins for the next 12 to 24 months before normalizing.
Welcome to the presentation of Kongsberg's second quarter results. This presentation is done as a webcast only, and you will be able to send in questions through the chat function.
Please note that this presentation contains forward-looking statements that, by their nature, involve known and unknown risks, uncertainties and other important factors that could cause the actual results to differ.
Today's presentation will be delivered to you by our CEO, Eirik Lie; and our CFO, Martin Wien Fjell. With that, I will hand it over to our CEO, Eirik.
Thank you, Jan Edvin. Good morning, everyone, and welcome to this second quarter results presentation. The second quarter of 2026 was characterized by high activity levels across the company, both in new orders and in our production facilities. We continued to sign significant new contracts, and we made key deliveries to our
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