Kongsberg Q3 2025 presentation: Defence segment drives 12% revenue growth

Introduction & Market Context

Kongsberg Gruppen (OB:KOG) presented its Q3 2025 investor presentation on October 30, highlighting solid performance across its business segments, with particularly strong results in its Defence & Aerospace division. The Norwegian industrial conglomerate reported a 12% year-over-year increase in total revenue, reaching NOK 13.3 billion, while maintaining robust margins and building a substantial order backlog.

The company’s performance comes amid increasing global defense spending and ongoing maritime industry transformation toward more sustainable and autonomous solutions. Kongsberg’s diversified portfolio across maritime, defense, and discovery sectors has positioned it well to capitalize on these market trends.

Quarterly Performance Highlights

Kongsberg reported an order intake of NOK 16.9 billion in Q3 2025, with weapon stations, integrated vessel solutions, and Hugin AUV contracts serving as key drivers. All business areas achieved a book-to-bill ratio above 1, contributing to the company’s growing order backlog, which now stands at NOK 142.2 billion.

As shown in the following revenue growth chart, the company’s overall performance was primarily driven by its Defence & Aerospace segment, which saw a remarkable 38% year-over-year increase:

The company’s EBIT reached NOK 2.0 billion in Q3 2025, up from NOK 1.87 billion in the same period last year, with the EBIT margin improving to 17.1% from 15.7%. While the Defence & Aerospace segment showed strong growth, Kongsberg Maritime and Kongsberg Discovery experienced slight revenue declines of 1% and 2% respectively, though both maintained healthy profit margins.

The following chart illustrates Kongsberg’s EBIT and margin development across its business segments:

Detailed Financial Analysis

Kongsberg’s order intake breakdown reveals strategic diversification across markets and sectors. The Defence & Aerospace segment’s backlog is heavily weighted toward long-term projects, with 72% scheduled for delivery in 2027 or later, providing revenue visibility for years to come. Geographically, Europe (excluding Norway) accounts for 59% of the defense backlog, followed by Norway at 21% and Asia-Pacific at 14%.

The detailed order intake breakdown by business area provides insight into Kongsberg’s market positioning:

The company demonstrated strong cash conversion in the quarter, with a total increase in cash of NOK 1.38 billion. Working capital management improved significantly in Kongsberg Maritime, with net working capital as a percentage of revenue decreasing from 13.5% in Q3 2024 to 7.7% in Q3 2025. The Defence & Aerospace segment maintained negative working capital at -5.48%, reflecting favorable payment terms on major contracts.

The following chart shows Kongsberg’s cash flow development and working capital trends:

Kongsberg’s associated companies also contributed positively to results. Kongsberg Satellite Services (KSAT) delivered stable revenues of NOK 562 million and improved EBIT to NOK 140 million, up from NOK 110 million in Q3 2024. Patria also showed significant improvement, with revenues of EUR 235 million and EBIT of EUR 76 million, compared to an EBIT loss of EUR 3 million in the same period last year.

The performance of these associated companies is illustrated in the following chart:

Strategic Initiatives & Outlook

Kongsberg’s presentation highlighted its strategic positioning across its three main business areas. In Kongsberg Maritime, the company emphasized its unique product portfolio and domain knowledge as key advantages in leading the maritime industry’s transformation. The persistent solid activity in aftermarket services and strong newbuild order backlog provide stability, while increasing technological complexity in the overall fleet drives demand for Kongsberg’s solutions.

The Defence & Aerospace segment continues to experience strong demand for its product portfolio, with ongoing tendering and negotiations related to multiple programs. The company noted that capacity expansion is on track to meet both planned deliveries and anticipated future demand, positioning it to capitalize on increasing defense budgets across Europe and allied nations.

For Kongsberg Discovery, the company highlighted significant demand from sectors such as fishery, marine research operations, energy, naval, and surveillance. With a solid backlog and strong positions in growing markets, this segment is well-positioned for future growth despite the slight revenue decline in the current quarter.

Geir Håøy, CEO of Kongsberg Gruppen, emphasized the company’s commitment to innovation and sustainability, noting, "The maritime industry is at the start of a major energy transition, and we believe Kongsberg Maritime will play an important role in driving this change." He also highlighted the company’s strategic position in defense, stating, "Defence spending will increase in the years to come, and Kongsberg Defence & Aerospace will continue to contribute to strengthening the defense capabilities in Norway and for our allies."

With a solid balance sheet and NOK 142.3 billion in order backlog, of which NOK 14.3 billion is scheduled for delivery in 2025, Kongsberg appears well-positioned for continued growth. The company’s focus on technological innovation and strategic market positioning across diverse sectors provides multiple avenues for expansion, even as individual segments face varying market conditions.

Full presentation:

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