Kongsberg Gruppen (KOG) Q3 2024 earnings summary

Executive summary

• Achieved strong and profitable growth in Q3 2024, with all business areas contributing to revenue increases and a record-high order backlog of nearly NOK 97 billion, supported by high market activity and increased defense spending.

• Announced expansion of missile production to the U.S. and Australia, reflecting international demand and strategic positioning.

• Continued investments in capacity, product development, and workforce expansion to support future growth.

• High market activity and increased defense spending contributed to robust performance.

Financial highlights

• Q3 2024 revenues reached NOK 11.92 billion, up 19% year-over-year; year-to-date revenue growth at 22%.

• EBIT for the quarter was NOK 1.87 billion, with a margin of 15.7%, up from 12.7% last year.

• Net earnings were NOK 1.37 billion, EPS at 7.72 NOK for the quarter.

• EBITDA totaled NOK 2.25 billion; cash position at NOK 7.13 billion, up NOK 1.19 billion from Q2.

• Order intake in Q3 was NOK 12.95 billion, with a book-to-bill ratio of 1.09; order backlog at quarter-end NOK 96.87 billion.

Outlook and guidance

• Strong order backlog of NOK 96.9 billion underpins growth into Q4 2024 and 2025, with positive market momentum and robust demand across all business areas.

• Maritime segment expected to benefit from high aftermarket activity, fleet renewal, and emission regulations, though shipyard capacity may limit newbuilds.

• Defence & Aerospace positioned for significant orders and further backlog growth; profitability to vary by project mix.

• Discovery and Digital segments anticipate continued growth, with ongoing investments in technology and digital solutions.

• NOK 11.7 billion of the order backlog is scheduled for delivery in Q4 2024.