Kongsberg sees partnerships as the next engine of defence growth

- As Kongsberg grows, so does the importance of partnerships.

The words belong to Kongsberg CFO Martin Fjell and capture a theme that runs throughout the company's Capital Markets Day in Kongsberg on Wednesday where Defence Nordic is present.

As the Norwegian defence group targets further growth through 2029 and 2033, management increasingly sees joint ventures and industrial partnerships as a key tool for accessing markets, expanding capacity and supporting innovation.

- They allow us to combine capabilities, share technology, access markets, increase capacity and strengthen our customer offerings, Fjell said.

The emphasis reflects the growing importance of industrial cooperation in defence markets, where customers increasingly demand local presence, long-term support and broader industrial participation alongside military equipment.

- No single company can do everything, Fjell said.

- Customers need integrated solutions, industrial cooperation, local presence and long-term support.

Those requirements have become increasingly important as governments seek not only military capabilities but also industrial benefits from major procurement programmes. 

For defence contractors, local partnerships can provide both market access and a way to meet offset and industrial participation requirements.

Nordic access

That dynamic appears to be shaping Kongsberg's thinking about future growth.

Throughout the presentations, partnerships were framed not merely as a supplement to organic expansion but as a way to scale capabilities, enter new markets and strengthen customer offerings.

Fjell also linked partnerships to innovation and capacity expansion, arguing that collaboration is becoming increasingly important as defence programmes grow in size and complexity.

One example highlighted by the CFO was Patria, in which Kongsberg owns a 49.9 per cent stake.

- Patria is strategically important to Kongsberg. It gives us exposure to attractive defence markets, Fjell said.

Beyond market access, the partnership strengthens Kongsberg's Nordic industrial footprint and creates opportunities for cooperation across business areas, including remote weapon stations for armoured vehicles and aircraft maintenance.

Partnerships featured not only in the financial discussion but also in management's broader view of Kongsberg's competitive position.

Eirik Lie, CEO of Kongsberg Defence & Aerospace, pointed to customer relationships and industrial partners as key assets supporting future growth and expansion into newer segments.

- Our established market standing, customer relationships and industrial partners put us in a great position to drive innovation and adoption in these segments in the future, Lie said.

The repeated emphasis on partnerships suggests they are set to play a larger role in how Kongsberg pursues its long-term ambitions.