Kongsberg Gruppen (KOG) CMD 2024 summary

Strategic ambitions and market outlook

• Aims to triple revenue from NOK 40 billion in 2023 to NOK 120 billion by 2033, supported by long-term trends in security, sustainability, and alignment with NATO and IMO targets.

• Record order backlog, with Defence & Aerospace at NOK 65–90.2 billion, and strong demand across all business areas.

• Major investments planned in production capacity, R&D, and global footprint, including new facilities in Norway, Australia, and India.

• Focus on maintaining investment grade rating, stable or growing dividends, and active portfolio management including M&A and divestments.

• Emphasis on cross-business area collaboration, leveraging technology backbone, and partnerships for growth.

Business area developments and technology focus

• Defence & Aerospace: Record order backlog, expanding production, and focus on next-gen technologies like autonomous systems, AI, and digitalization.

• Maritime: Positioned as a leader in energy transition, targeting integrated solutions for decarbonization and digitalization, with ambitions to exceed 40% revenue growth in five years.

• Discovery: Market leader in ocean technologies, investing in AI and quantum tech, and leveraging partnerships for product development and resilience.

• Digital: Achieved 45% top-line growth, expanding SaaS business, and pioneering industrial AI and digital twin solutions for heavy asset industries.

• Defence market growth driven by rising budgets in Europe and Asia, with strong positioning for industrial warfare and nation conflict trends.

Financial guidance and capital allocation

• EBIT margin target set above 15% at group level by 2033, with 2025 targets already surpassed (LTM Q1 2024: 41.4 BNOK revenue, 13.2% EBIT margin).

• Investments in PPE and R&D to rise to 15% of revenue in the medium term, up from historical 12-13%.

• Shareholder remuneration policy remains stable, with potential for extraordinary dividends and share buybacks.

• Associates like KSAT and Patria expected to contribute to growth, with ongoing investments and expansion in space and defense sectors.

• Balance sheet remains strong with an unchanged A- credit rating, supporting increased R&D and capacity investments.