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Introduction & Market Context
Fjord Defence Group ASA (DFENS) presented its Q2 2025 financial results on August 29, 2025, highlighting what the company described as a "transformational quarter" marked by strategic repositioning and a significant acquisition. The company’s shares closed at 1.185, up 3.49% on the day of the presentation, reflecting positive market reception to the results and strategic direction.
The presentation comes amid a backdrop of increased defense spending across Europe and NATO countries, with the company positioning itself to capitalize on what it describes as a "multi-year upcycle" in defense markets.
Strategic Transformation
The second quarter of 2025 marked a pivotal moment for Fjord Defence Group as it completed the acquisition of Fjord Defence AS, a specialized weapon integration solutions provider. The acquisition was settled with NOK 30 million in cash and approximately NOK 140 million in shares at NOK 0.8 per share.
As shown in the following slide detailing the company’s transformational quarter:
The acquisition represents a strategic repositioning of the company as a "compounder within the defence industry." To support this transformation, Fjord Defence Group successfully raised NOK 60 million through a private placement that was significantly oversubscribed, and established bank debt facilities of NOK 85 million.
The company has also initiated an uplisting process to the main list on the Oslo Stock Exchange, which would potentially increase visibility and liquidity for investors.
Financial Performance Highlights
Fjord Defence AS, acquired on June 20, 2025, delivered strong results in the first half of 2025 with revenues of NOK 49.7 million, EBITDA of NOK 8.1 million, and EBIT of NOK 7.3 million. The company’s performance is illustrated in the following financial summary:
At the group level, Fjord Defence reported a positive EBITDA of NOK 10.7 million for H1 2025. The consolidated financial statement shows the substantial contribution of the defense segment to the group’s revenue and profits:
The company maintains a strong financial position with a cash balance of NOK 72.4 million following the share issue. With a high equity ratio of 86% and a net cash position of NOK 47.4 million, Fjord Defence Group has significant financial flexibility to pursue its growth strategy. The company has drawn down only NOK 25 million of its debt facilities, leaving NOK 60 million unutilized.
Growth Strategy & Market Opportunity
Fjord Defence AS has established itself as a profitable niche player in the defense industry since its founding in 2017. Headquartered in Vestfold, Norway, with a subsidiary in the USA, the company specializes in weapon integration solutions and serves customers including Danish, British, Dutch, American, and Swedish defense organizations.
The company’s profile and growth trajectory are detailed in the following slide:
Fjord Defence Group’s growth strategy centers on a "buy and build" approach, focusing on acquiring established, profitable businesses within the defense and security sectors. The company has set ambitious revenue targets through both organic growth and strategic acquisitions:
The company is positioning itself to benefit from increased defense spending across Europe and NATO countries. According to the presentation, European defense budgets are experiencing a structural shift, with most NATO countries now pledged to meet or exceed the 2% of GDP defense spending target.
Management believes that the defense industry is entering what they describe as a "super cycle" for niche players like Fjord Defence. The company is strategically positioned to capitalize on the later phases of defense spending increases, which typically follow initial investments in munitions and heavy equipment:
Forward-Looking Statements
Looking ahead, Fjord Defence Group expects Fjord Defence AS to generate revenues in excess of NOK 100 million in 2025, with an order book of NOK 50 million for execution in the second half of the year. The company highlighted that Fjord Defence AS has qualified through a development contract with the US Department of Defense (SO/LIC), potentially opening new growth opportunities.
Management is currently evaluating several acquisition targets in the Nordic and Baltic regions as part of its growth strategy. With its solid balance sheet and strong cash position, the company believes it is well-positioned to pursue both organic growth and strategic acquisitions.
The company’s leadership team, featuring industry veterans with extensive defense sector experience, emphasizes their commitment to building long-term value. Jon Asbjørn Bø (Founder and Chairman), Harald Lunde (CEO, Fjord Defence), and Øyvind Mølmann (CFO) bring significant expertise from companies such as Rheinmetall, Simrad Optronics, and other defense industry players.
As Fjord Defence Group continues its transformation into a focused defense industry player, investors will be watching closely to see if the company can execute on its ambitious growth plans in what appears to be a favorable market environment for defense sector companies.
Full presentation:
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