Kongsberg posts strong growth as defence demand surges

Kongsberg reported a sharp rise in revenues and orders in the first quarter, underscoring how Europe’s rearmament and rising geopolitical tensions are fuelling demand for defence technology.

The Norwegian defence group said revenues rose 26 percent year on year to NOK 9.2bn, while operating profit reached NOK 1.5bn, corresponding to a margin of 16.6 percent.

The results reflect a structural shift rather than a short-term upswing, with missiles, air defence systems and remote weapon stations now driving growth as western governments accelerate military spending.

Order intake surged to around NOK 27bn during the quarter, lifting the company’s backlog to a record NOK 152bn and providing visibility well into the next decade.

A large share of the increase was driven by a NOK 16bn contract to supply counter-drone systems to Poland, alongside continued deliveries linked to the F-35 fighter jet programme and armoured vehicle projects in Europe.

The company’s defence systems division was the main growth engine, with revenues rising 45 percent, supported by increased demand for air defence and counter-unmanned aerial systems.

Kongsberg’s performance comes as NATO countries step up procurement in response to Russia’s war in Ukraine and broader security concerns, boosting demand across the defence supply chain. The company said it was experiencing “record-high demand” across its product portfolio.

The results mark the first full reporting period since Kongsberg spun off its maritime business, leaving a more focused defence and technology group. The restructuring has sharpened its exposure to defence spending, which is expected to remain elevated in the coming years.

However, the company faces the challenge of scaling production fast enough to meet demand. Kongsberg said it is investing in capacity expansion in Norway and internationally to deliver on its growing order book.

Despite the strong outlook, only a limited portion of the group’s record NOK 152bn backlog is scheduled for delivery this year, underlining how capacity constraints and long lead times may temper near-term growth.