KONGSBERG increased its operating revenues by 29 per cent and recorded solid growth in all business areas compared to 3rd quarter last year. The order intake was NOK 11.3 billion and the order backlog increased to NOK 69.2 billion.
In addition, KONGSBERG signed a record NOK 16 billion contract with Poland, which will be included in the order backlog when the contract becomes effective.
3rd quarter 2023*:
- The order intake was BNOK 11.3, corresponding to a book/bill of 1.14
- Operating revenues was BNOK 10.0 compared to BNOK 7.7, an increase of 29 %
- EBITDA was BNOK 1.6, up from BNOK 1.4
- EBITDA-margin was 16.3 % compared to 17.6 %
- EBIT was BNOK 1.3, up from BNOK 1.0
- EBIT-margin was 12.7 %, compared to 13.4 %
*) compared to 3rd quarter 2022
Accumulated as of 3rd quarter 2023*:
- The order intake was BNOK 33.3, corresponding to a book/bill of 1.18
- Operating revenues was BNOK 28.7 compared to BNOK 22.4, an increase of 28 %
- EBITDA was BNOK 4.4 up from BNOK 3.2
- EBITDA-margin was 15.2 % compared to 14.3 %
- EBIT was BNOK 3.3 up from BNOK 2.2
- EBIT-margin was 11.6 %, up from 10.0 %
*) compared to accumulated as of 3rd quarter 2022
All business areas contribute to solid growth
The strong growth continued, and all KONGSBERG business areas contributed significantly to the solid progress. Kongsberg Defence & Aerospace continued to grow, particularly driven by missiles and weapon stations. Kongsberg Maritime had increased activity in both the newbuilding and aftermarket. In Kongsberg Discovery, the growth came mainly from deliveries to fisheries and research vessels.
"We continued our growth and delivered close to NOK 10 billion in operating revenues and an operating profit of NOK 1.3 billion in the quarter. So far in 2023, revenue growth is 28 per cent compared to last year. The Group's order backlog is now more than NOK 69 billion. At the same time, we see significant opportunities ahead, which will enable further backlog growth," says President and CEO Geir Håøy of KONGSBERG.
Significant investments for continued growth
KONGSBERG has an order backlog of more than NOK 69 billion and is positioned for further growth in the years to come. This requires increased capacity in terms of employees, equipment, as well as new and more efficient production and buildings. So far this year, more than NOK 1.4 billion has been invested in property, plant and equipment. Of this, more than NOK 600 million is related to the new missile factory being built in Kongsberg. The factory will be completed summer 2024. In addition, KONGSBERG invests in new and existing facilities in several locations in and outside Norway.
Continuous investments are made in product development, both related to the development of new systems and further development of existing ones.
"KONGSBERG has an extensive product portfolio related to security, surveillance and reduction of climate footprint through alternative energy sources and more efficient energy utilisation. Every year, we invest considerable amounts in new solutions and further development of the existing portfolio. If the world is to achieve its climate ambitions, everyone must contribute. At the same time, it is important that these investments become financially sustainable. Investing in product development is therefore one of the most important things we can do for a sustainable future," says Håøy.
Record deal in Poland
In September, Kongsberg Defence & Aerospace signed an agreement with Poland for delivery of a Naval Strike Missile (NSM) coastal defence system worth NOK 16 billion. This is the largest single contract in KONGSBERG's history. The coastal defense system uses the NASAMS command and control system with the NSM. The contract will be included in the order backlog when it becomes effective in connection with signing the export financing.
"This is the largest single contract in KONGSBERG's history, and an important milestone in our more than 200-year history. Poland has been a long-term partner and we are proud to have signed this agreement. With the changed security situation in Europe, Poland is determined to secure important defence capabilities, and for KONGSBERG as an industrial partner, this ensures predictability to invest and continue to build capacity to meet these needs", says Håøy.
Will continue to grow and deliver solid results
At the end of the 3rd quarter, KONGSBERG had an order backlog of NOK 69.2 billion, of which NOK 10.5 billion will be delivered in the 4th quarter 2023.
"At our Capital Markets Day in 2022, we stated our ambition to deliver revenue of more than NOK 40 billion in 2025. Our growth rate is higher than previously anticipated, and we will most likely reach this goal ahead of schedule. But it doesn't stop here. We have a record-high order backlog and we have never experienced stronger demand for the total KONGSBERG portfolio. KONGSBERG's ambition is to continue our growth journey", concludes Håøy.
