Headline: Kongsberg Reports Robust Q3 Growth and Record-Breaking Order Volume

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Headline: Kongsberg Reports Robust Q3 Growth and Record-Breaking Order Volume

In the recent third-quarter earnings call, the global technology group Kongsberg announced a significant year-on-year revenue increase of 19%, reaching NOK 11.92 billion. The company’s President and CEO, Geir Haoy, highlighted the strong financial performance, which included an EBIT of approximately NOK 1.9 billion and a record order backlog of around NOK 97 billion. Kongsberg Maritime (KM) particularly stood out with a revenue increase of 30%, driven by high demand for new vessels and aftermarket services. The company also reported a solid net profit of NOK 1.37 billion and earnings per share of NOK 7.72 for the third quarter of 2023.

Key Highlights Kongsberg’s revenues rose by 19% year-on-year to NOK 11.92 billion. EBIT for the quarter reached approximately NOK 1.9 billion. The company’s order intake was about NOK 13 billion, with a record order backlog of NOK 97 billion. Kongsberg Maritime experienced a 30% revenue increase, fueled by demand for new ships and services. Significant contracts included NOK 4.7 billion for Joint Strike Missiles from Australia and an anticipated NOK 11 billion for air defense systems from the Netherlands. Net profit was NOK 1.37 billion, with earnings per share at NOK 7.72. Cash position remained strong at NOK 7.1 billion, an increase of NOK 1.2 billion from the previous quarter. Despite a drop in EBIT margin for Kongsberg Discovery, its EBIT rose by 12% to NOK 167 million. Expansion of missile production capacity in the U.S. and Australia due to rising defense priorities.

Company Outlook Kongsberg is positioned for continuous growth, focusing on technology-driven solutions for a sustainable maritime industry. The company aims for steady growth and improved margins through cost control and efficiency. Strong market demand for its offerings is expected through 2025 and beyond.

Challenges Kongsberg Defence & Aerospace faced negative working capital of NOK 60 million due to customer prepayments on large contracts. The EBIT margin for Kongsberg Discovery fell from 16.1% to 14.9%.

Positives Kongsberg Digital improved its negative EBIT from NOK 84 million in the previous year to NOK 43 million, achieving positive EBITDA. New missile production facilities in Norway, Australia, and the U.S. are expected to significantly boost production capacity.

Subpar Performance Targets No specific underperformance targets were highlighted in the earnings call summary.

Q&A Highlights CEO Geir Haoy discussed the strong momentum in new sales and aftermarket activities for Kongsberg Maritime, expressing optimism about solid margins heading into 2025. Caution was advised regarding precise margin forecasts due to the balance between project mix and new sales versus aftermarket activities. Mette Bjorgen commented on KM’s portfolio evolution over the past decade, impacting margin comparisons.

In conclusion, Kongsberg’s third-quarter results demonstrated solid financial performance with a strong outlook for the future. The company’s strategic expansions and focus on technology-based solutions position it well in the competitive global market.