Kongsberg Shares Jump as Missile Demand Drives Record Q4 Performance

The Oslo-listed group reported revenue of 16.78 billion Norwegian kroner ($1.71 billion) for the quarter ending Dec. 31, a sharp rise from the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 2.46 billion kroner, beating Bloomberg consensus estimates by 17%. Analysts at Swedish bank SEB characterized the performance as "above expectations by almost any measure," noting that the company’s delivery surpassed even the most optimistic forecasts.

Capacity Expansion and Strategic Growth

To keep pace with a record order backlog of 157 billion kroner, Kongsberg is aggressively scaling its manufacturing footprint. The company confirmed that construction of new missile production facilities in the United States and Australia remains on schedule. This industrial expansion is critical as nations scramble to bolster their defense capabilities, particularly in air defense and remote weapon stations.

Recent operational milestones and financial targets include:

• A 140 million euro contract with Finland’s Patria to supply remote weapon stations for German and Swedish forces.
• A proposed dividend for 2025 of 5.70 kroner per share, exceeding analyst projections.
• The scheduled demerger and initial public offering of its maritime division on the Oslo Stock Exchange, set for April 23.

CEO Geir Haoy noted that the decision to spin off the maritime business reflects the diverging priorities of the defense and commercial sectors in a volatile global landscape. While the maritime unit faces its own market dynamics, the core defense business continues to benefit from a "robust foundation" built on high-demand tactical solutions. Haoy emphasized that the current geopolitical climate has placed unique demands on the group's business models, necessitating a more focused corporate structure.