Kongsberg Gruppen (KOG) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 with revenues of NOK 14.62 billion, up 28% year-over-year, and significant profitability improvement across all business areas.

• Order intake reached NOK 20.74 billion, contributing to a record order backlog of NOK 134 billion, with 23% scheduled for delivery in 2025.

• Strategic actions included integrating Kongsberg Digital's maritime portfolio, selling the steering gear and rudder business, and acquiring Naxys Technologies.

• High activity in defense (missiles, air defense), maritime (newbuilds, aftermarket), and subsea technology deliveries supported growth.

• All business areas reported book-to-bill ratios above one, increasing order backlogs.

Financial highlights

• Q1 revenues reached NOK 14.62 billion (+28% year-over-year); adjusted growth was 19% excluding the steering gear and rudder business sale.

• Group EBIT was NOK 2.89 billion (19.8% margin), with adjusted EBIT (excluding sales gain) at NOK 1.84 billion and a 13.6% margin.

• Kongsberg Maritime revenues grew 28% to NOK 6.74 billion; Defence & Aerospace up 9% to NOK 5.38 billion; Discovery up 29% to NOK 1.36 billion.

• Strong cash conversion, with cash increasing from NOK 14.29 billion to NOK 16.46 billion during the quarter.

• Earnings after tax were NOK 2.28 billion, with EPS of NOK 12.94.

Outlook and guidance

• Order backlog stands at NOK 134 billion, with NOK 30.2 billion deliverable in 2025, providing strong visibility.

• Long-term ambition to reach at least NOK 120 billion in revenues by 2033 remains unchanged.

• Ongoing negotiations for a new JSM contract valued at NOK 6 billion, expected to close in summer 2025.

• Market demand remains strong across maritime, defense, and discovery segments, with continued growth expected.

• Continued investments in capacity expansion, especially in defense and maritime, expected through 2027-2028.