Kongsberg Gruppen (KOG) Q2 2024 earnings summary

Executive summary

• Ambition to triple revenue to at least NOK 120 billion by 2033, leveraging strong market position and long-term demand drivers.

• Achieved robust Q2 2024 results with 21% year-over-year revenue growth to NOK 11.59 billion and strong profitability; all business areas contributed to growth.

• Record-high order backlog of NOK 95.6 billion, driven by significant defense and maritime contracts, including major NASAMS and Joint Strike Missile deals.

• Strategic investments in capacity, including the opening of the Nexus missile factory, position the group for continued expansion.

• Strong demand across defense, maritime, and digital segments, driven by security and sustainability trends.

Financial highlights

• Q2 2024 revenues were NOK 11.59 billion, up 21% year-over-year; H1 revenues reached NOK 23 billion, up 23% year-over-year.

• Q2 EBIT was NOK 1.45 billion (12.5% margin), up from NOK 1.04 billion (10.8%) last year; H1 EBIT at NOK 2.91 billion (12.6% margin), up 41% year-over-year.

• Net earnings for H1 were NOK 2.3 billion, EPS at 13.15, up 53% year-over-year; Q2 net income was NOK 1.18 billion, EPS at NOK 6.79.

• Order intake in H1 totaled NOK 30 billion (+33%), with a book-to-bill ratio of 1.3; Q2 order intake reached NOK 17.28 billion.

• Cash and equivalents at period end were NOK 5.94 billion after dividend and bond repayment.

Outlook and guidance

• Continued strong demand expected across all business areas, with high market activity and robust order intake.

• Defence & Aerospace expects strong demand for missiles and air defence, with ramp-up in missile capacity.

• Maritime segment benefits from fleet renewal and emission regulations, though shipyard capacity may limit newbuilds.

• Digital segment anticipates continued growth in recurring revenues and ongoing investments, aiming for positive EBITDA in H2 2024.

• Organic investments projected to remain at 5% of revenue for the next 3–5 years to support growth ambitions.