Financial results Q3 2024: Growth and solid profitability in the quarter

At the end of Q3 2024, the Group had an order backlog of NOK 96.9 billion, of which NOK 11.7 billion will be delivered during Q4 2024. This sets the stage for a strong finish to the year.

“The third quarter was both solid and eventful. We achieved profitable growth and signed key agreements that pave the way for future development. Alongside fulfilling our current commitments, we have taken measures to expand capacity and entered into new development collaborations. KONGSBERG will contribute to security and a sustainable transition," says Geir Håøy, President and CEO of KONGSBERG.

• Solid growth in the business areas compared to Q3 2023
• Well positioned with a record-high order backlog and a book/bill of 1.09 in the Q3
• Very high market- and tendering activity across the entire Group
• Enhanced security and sustainability are top priorities in many countries and KONGSBERG is experiencing strong demand for products and services

Operating revenues in Q3 was MNOK 11 924, compared with MNOK 9 978 in the same quarter last year, an increase of 19 per cent. Order intake in Q3 was MNOK 12 951, compared to MNOK 11 339 in the same quarter last year. EBIT in Q3 was MNOK 1 868, corresponding to an EBIT margin of 15.7 per cent compared to MNOK 1 270 (12.7 per cent) in the same quarter last year. Favourable project mix, volume effects and efficient project execution contributed to the increased margin. Accumulated EBIT as of Q3 2024 was MNOK 4,778, corresponding to an EBIT margin of 13.7 per cent compared to MNOK 3,327 (11.6 per cent) in the same period last year.

Growth in the entire maritime domain

“The average age of the global fleet has risen significantly over the past decade. Concurrently, the shipping industry is encountering stricter regulations for reducing emissions and enhancing energy efficiency. Technology is crucial to meeting these challenges, and KONGSBERG is at the forefront of this advancement," says Håøy.

Kongsberg Maritime was the largest growth driver this quarter, increasing its operating revenues by 30% compared to Q3 last year, reaching MNOK 6,487. The business area’s order intake of MNOK 6,953, with a book-to-bill ratio of 1.07, underscores its strong market position.

The growth in orders from newbuildings was nearly 40 per cent, making up for more than half of the order intake.

“The maritime industry is in a transformation targetting significant energy efficiency and emission reductions. Technology and access to data, both above and below water, are prerequisites for success, and we provide solutions that are required for a successful transition," says Håøy.

Sustainable marine resource management and the protection and monitoring of critical infrastructure are top priorities for both national and international stakeholders.

In Q3, Kongsberg Discovery secured four new contracts for the delivery of Hugin autonomous underwater vehicles. Hugin comes with different specifications and are an important part of the business area’s growth. There is significant demand for Hugin and other advanced solutions from a diverse range of customers, including commercial entities, public authorities, and the armed forces.

Increased demand and foundation for growth

“We have welcomed many new employees in recent years, and we experience that KONSGBERG is an attractive employer," says Håøy.

Håøy says that the group has made significant investments in recent years, including new hires, facilities and supply chain development. By the end of Q3 2024, the company had 14,361 employees, marking an increase of 463 in the quarter and 1,165 over the past year. KONGSBERG is expanding, and the workforce will continue to grow to support this development.

When discussing capacity needs, it’s crucial to remember that it is not just about the number of employees. We have invested in new and upgraded facilities across all our business areas. Additionally, we are significantly focusing on streamlining processes, optimizing facility use, and expanding the Group’s geographical reach,” says Håøy

Kongsberg Defence & Aerospace reported operating revenues of MNOK 4,255 in Q3 an 8 per cent increase from the same quarter last year, with an order backlog of NOK 72 billion at the end of Q3 2024. The business area is well-positioned for several new and significant programs. The transfer of missile production to the new and modern facilities in Kongsberg, Norway, is on track. Additionally, further capacity expansions for missile production were announced in Q3 for both Australia and the US.

At the beginning of Q4, the government of the Netherlands announced a major procurement of NASAMS and NOMADS air defence systems, with the contract signing expected later this year. Valued at approximately NOK 11 billion, this will be the largest air defence contract ever secured by KONGSBERG.

“Heightened security and defence priorities in many countries are driving strong demand for our products and services. Simultaneously, the global transformation towards more efficient energy utilization and renewable energy sources is accelerating. KONGSBERG is well-positioned to meet these challenges, with a record-high order backlog and unprecedented market activity,“ says Håøy.

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