Kongsberg Gruppen has sharply increased its results.

Kongsberg Gruppen has sharply increased its results.

Kongsberg Gruppen achieved results of NOK 1.49 billion before tax in the second quarter of the year, up from NOK 984 million in the same period last year.

The Group recorded good revenue growth across all divisions in the second quarter of the year.

“We have put another strong quarter behind us. Operating income is up, profitability is good. We are seeing strong demand for our solutions, both from civilian and defence customers,” says CEO and Managing Director Ger Hoy.

Shortly after opening on the Oslo Stock Exchange on Wednesday, Kongsberg Gruppen’s share price was up about 8 percent since its previous closing price. In one year, the stock has doubled in value.

The stock ended up 11.07 percent at the close of trading on the same day. This is the company’s best trading day since May 8, 2020. E24.

Increase trading volume

Turnover increased from NOK 9,614 billion to NOK 11,589 billion. Operating profit (EBIT) increased from NOK 1,038 billion to NOK 1,448 billion.

The Group achieved an EBITDA result of NOK 1.815 billion. According to Today's business This is 12 percent higher than analysts had expected.

New contracts

The quarterly report shows high activity in air defense and missile deliveries in the second quarter. In a stock market announcement, the group noted that several new contracts for the NASAMS air defense system were signed.

The first concerned the expansion and modernization of Spain’s existing air defense system, while the second concerned Norway’s air defense – in line with the plans presented in the Norwegian Armed Forces’ long-term plan. The group also concluded an agreement to deliver the Joint Strike Missile (JSM) to the US Air Force.

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– The US Air Force is by far the largest buyer of the F-35 fighter jet, and their choice of JSM could become a major source of defense revenue in the coming years, Howe says.

Rocket production

In June, the group opened the Nexus missile production unit.

The quarterly report indicates that the move to a new facility, as well as the natural gradual implementation of the contract portfolio, is causing growth to slow somewhat in the coming quarter before growth picks up again.

Dalila Awolowo

Dalila Awolowo

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