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Introduction & Market Context
Kongsberg Group (OB:KOG) presented its Q2 2025 financial results on July 9, 2025, revealing strong performance across its three main business areas: Maritime, Defence & Aerospace, and Discovery (NASDAQ:WBD). The Norwegian industrial conglomerate continues to benefit from increased defense spending in Europe and technological transformation in the maritime sector, resulting in substantial order intake growth and revenue expansion.
The presentation, delivered by President & CEO Geir Håøy and EVP & Group CFO Mette Toft Bjørgen, highlighted the company’s progress toward its ambitious 2033 goals of achieving revenues exceeding NOK 120 billion and an EBIT margin above 15%.
Quarterly Performance Highlights
Kongsberg reported impressive year-over-year growth in Q2 2025, with total revenue reaching NOK 13.90 billion, a 20% increase from NOK 11.59 billion in Q2 2024. EBIT for the quarter rose to NOK 1.92 billion, up from NOK 1.45 billion in the same period last year, with the EBIT margin improving slightly to 12.8% from 12.5%.
The company’s order intake showed even stronger momentum, with a 30% year-over-year increase for the first half of 2025, reaching NOK 38.92 billion compared to NOK 30.02 billion in H1 2024. This robust order intake has further strengthened Kongsberg’s already substantial backlog, which now stands at NOK 138.8 billion, with NOK 22.2 billion scheduled for delivery in 2025.
As shown in the following chart of Kongsberg’s profitable growth trajectory:
Segment Analysis
All three of Kongsberg’s business segments contributed to the company’s growth, though with varying dynamics:
Kongsberg Defence & Aerospace emerged as the standout performer with a 38% year-over-year revenue increase in Q2 2025, reaching NOK 6.12 billion compared to NOK 4.42 billion in Q2 2024. The segment’s EBIT grew to NOK 0.87 billion from NOK 0.70 billion, though the EBIT margin decreased slightly to 14.3% from 15.9%. The segment’s backlog is heavily concentrated in Europe (71%), reflecting strong demand for defense systems amid increased regional security concerns.
Kongsberg Maritime delivered more modest but still solid growth, with Q2 2025 revenue of NOK 6.39 billion, up 7% from NOK 5.98 billion in Q2 2024. EBIT remained relatively stable at NOK 0.72 billion (down slightly from NOK 0.73 billion), with the EBIT margin declining to 11.2% from 12.2%. The company noted that new build order intake increased by 40% year-over-year in H1 2025, with a diverse distribution across vessel types.
Kongsberg Discovery, the company’s smallest segment, showed impressive growth with a 21% revenue increase to NOK 1.23 billion and a substantial improvement in EBIT margin to 18.8% from 14.2% in the prior year. The segment’s EBIT reached NOK 0.23 billion, up from NOK 0.14 billion in Q2 2024.
The following chart illustrates the revenue growth across all segments:
The EBIT and margin development by segment shows the varying profitability dynamics:
Strategic Positioning and Outlook
Kongsberg’s presentation emphasized its strong market positioning across all business areas. For Kongsberg Maritime, the company highlighted its frontrunner position in maritime transformation despite forecasts of declining vessel contracting between 2024-2025. The company noted that the market size for its typical scope remains firm, supported by increased technology content driving demand and persistent high activity in aftermarket services.
The Defence & Aerospace segment continues to benefit from strong demand, particularly for missiles and air defense systems. The segment’s backlog is heavily weighted toward these product categories, with missiles representing 51% and air defense 31% of the total backlog. Kongsberg is expanding its international capacity to meet this growing demand.
The order intake breakdown by segment provides insight into Kongsberg’s future revenue streams:
Kongsberg’s associated companies are also performing well. Kongsberg Satellite Services showed steady revenue growth and improving EBIT, with Q2 2025 EBIT of NOK 121 million compared to NOK 104 million in Q2 2024. Patria, the company’s defense joint venture, reported stable revenue of EUR 226 million in Q2 2025 and improved EBIT of EUR 20 million compared to EUR 12 million in Q2 2024.
Forward-Looking Statements
Looking ahead, Kongsberg maintains a positive outlook across all business segments. The company expects continued strong demand for its maritime solutions, driven by the ongoing technological transformation in the sector. For Defence & Aerospace, the company highlighted ongoing marketing, tendering, and negotiations related to multiple programs, with particularly strong demand for missiles and air defense systems.
The Discovery segment is anticipated to benefit from significant demand in areas such as fishery, marine research operations, energy, naval, and surveillance applications. The company emphasized its solid backlog and strong positions in growing markets.
Kongsberg’s solid balance sheet, with a cash position of NOK 30.6 billion, provides financial flexibility to pursue strategic opportunities while maintaining its commitment to shareholder returns. The company’s active portfolio management strategy was highlighted with references to recent acquisitions and partnerships.
The company’s outlook slide summarizes the positive momentum across all segments:
With its robust order backlog, strong market positioning, and continued focus on innovation, Kongsberg appears well-positioned to progress toward its ambitious 2033 targets of NOK 120 billion in revenue and an EBIT margin exceeding 15%. The company’s diversified business model, with exposure to both defense and commercial markets, provides resilience against potential market fluctuations while allowing it to capitalize on growth opportunities across multiple sectors.
Full presentation:
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