Fjord Defence Group (DFENS) Q3 2025 earnings summary

Executive summary

• Completed transformative acquisition of Fjord Defence AS and announced agreement to acquire Scanfiber Composites A/S, expanding presence in high-growth, high-margin defence niches and repositioning as a sector compounder.

• Uplisted to the main board of the Oslo Stock Exchange and completed an oversubscribed share offering for NOK 10 million, enhancing access to capital and visibility.

• Core business focuses on modular weapon integration solutions and ballistic protection, serving multiple national defence forces and military OEMs.

• Buy-and-build strategy targets profitable defence companies with strong organic growth potential in the Nordics and Baltics.

• Signed new contracts in several NATO countries, with deliveries expected in coming months.

Financial highlights

• Group revenue for 9M'25 reached NOK 67 million, up 17% year-over-year; Q3 2025 revenue was NOK 17 million, up from NOK 9.1 million in Q3 2024.

• Scanfiber reported NOK 159 million in revenue and over NOK 50 million in EBITDA, with a 30% margin; delivered >50% revenue CAGR and >30% EBITDA/EBIT margins in 24/25A.

• Fjord Defence AS expected to reach NOK 100 million in revenue for the year, with EBITDA margins at or above 15%.

• Net cash position of NOK 39 million and equity ratio of 85% at quarter-end; bank deposits at quarter-end were NOK 64 million.

• Q3 2025 net loss was NOK 36.9 million, compared to NOK 43.1 million loss in Q3 2024; basic EPS for Q3 2025 was NOK -0.99.

Outlook and guidance

• Management expects strong organic growth and further value-accretive acquisitions, with a robust M&A pipeline and continued expansion as a leading European defence compounder.

• Scanfiber acquisition expected to add significant growth and revenue potential, with a robust orderbook and pipeline supporting multi-year visibility.

• Defence market in Europe anticipated to grow robustly over the next decade, benefiting from increased budgets and geopolitical developments.

• Continued positive cash contribution expected from legacy business.