CEO’s Perspective: Our highest priority is to deliver
In the third quarter of 2023, KONGSBERG achieved remarkable revenue growth of 50% compared to the same period in the previous year, 2022. The company demonstrated strong profitability, with EBIT rising by 66%, bolstered by increased volumes and robust project execution across its divisions. Growth was notably propelled by major air defense, counter-UAS, and missile programs, maintaining elevated activity levels across all segments.
In line with its strategic plans for future growth, KONGSBERG is actively investing in capacity enhancements. The recent opening of Horten Horizon in Vestfold, Norway, marked the addition of 45,000 square meters of state-of-the-art office space, high-tech laboratories, and advanced production facilities. Furthermore, the announcement of a new factory in Poland will further boost production capabilities across Europe.
The strong order intake during the third quarter reflects persistent demand for KONGSBERG’s core offerings, including missiles, air defense systems, and weapon stations. Several key contracts were secured during the quarter, highlighted by the largest single NASAMS contract to date, valued at approximately NOK 10 billion, signifying Belgium’s status as the 18th country to order or deploy the NASAMS system. Additionally, KONGSBERG signed a contract with the Netherlands for further deliveries of the NASAMS technology.
Furthermore, KONGSBERG entered into a contract to supply remotely operated weapon stations for the Canadian Army’s armored support vehicles. These weapon stations are also essential to the company’s counter-UAS solutions, an area witnessing increasing interest.
Demand for the NSM and JSM missile systems continues to surge. In July, the US Air Force placed an order for additional JSM missiles to enhance its F-35 fleet. Later in the quarter, KONGSBERG signed a framework agreement with the US Marine Corps to provide production and maintenance support for the NSM.
The rising focus on maritime security underscores the necessity for effective surveillance across vast ocean areas, which is driving demand for KONGSBERG’s dual-use underwater portfolio, including advanced sonar technology and autonomous underwater vehicles. This demand is evidenced by a contract awarded to supply a range of AUV solutions to the United States.
Additionally, during the quarter, KONGSBERG completed the acquisition of Sonatech, a California-based company specializing in advanced underwater acoustics solutions. This acquisition complements KONGSBERG’s existing technology portfolio and reinforces its position as a key supplier to the US Navy.
At the recent security forum in Warsaw, NATO’s Deputy Secretary General, Radmila Shekerinska, emphasized the importance of Europe strengthening its defense capabilities, stating, “Building stronger defenses is our top priority in NATO. This is how we keep our one billion citizens safe.” KONGSBERG is pivotal to this industrial expansion, investing in enhanced production capacity across several critical product areas.
With an order backlog totaling NOK 174 billion, KONGSBERG is well-positioned for continued growth. Together with its suppliers, the company is capable of meeting current order demands while preparing to address future needs.
Amid ongoing geopolitical tensions and conflicts, there is a compelling necessity for advanced technologies and solutions that bolster security and resilience. KONGSBERG remains committed to collaborating with its customers and partners to safeguard national sovereignty and contribute to a safer world.
