Second Quarter 2023: Strong growth and NOK 1 billion EBIT

2nd quarter 2023:

• Order intake was BNOK 10.5 corresponding to a book/bill of 1.09
• Operating revenues was BNOK 9.6 compared to BNOK 7.6 in 2^nd quarter 2022, an increase of 27 %
• EBITDA was BNOK 1.4, up from BNOK 1.0 in 2^nd quarter 2022
• EBITDA-margin was 14.4 % compared to 13.4 % in 2^nd quarter 2022
• EBIT was BNOK 1.0, up from BNOK 0.7 in 2^nd quarter 2022
• EBIT-margin was 10.8 %, up from 9.0 % in 2^nd quarter 2022

First half year 2023:

• Order intake was BNOK 22.6 equivalent to a book/bill of 1.21
• Operating revenues were BNOK 18.7 compared to BNOK 14.6 in 1^st half year 2022, an increase of 28 %
• EBITDA was BNOK 2.7, up from BNOK 1.8 in 1^st half year 2022
• EBITDA-margin was 14.6 % compared to 12.6 % in 1^st half year 2022
• EBIT was BNOK 2.1, up from BNOK 1.2 in 1^st half year 2022
• EBIT-margin was 11.0 %, up from 8.2 % in 1^st half year 2022

"We delivered another strong quarter with NOK 9.6 billion in operating revenues and EBIT of NOK 1.0 billion. The order backlog has increased to NOK 68.1 billion and we continue to support further growth. We see significant opportunities ahead, which makes us confident that the order backlog will grow further," says President and CEO Geir Håøy of KONGSBERG.

Strong growth in all business areas

The strong growth continued, and all business areas in KONGSBERG increased operating revenues by more than 20 per cent in the quarter, compared with the corresponding quarter last year. Kongsberg Maritime has increased activity in both the newbuilding and aftermarket and delivered growth of 24 per cent. Kongsberg Defence & Aerospace increased operating revenues by 29 per cent, mainly driven by missiles and air defence. Kongsberg Discovery grew 25 per cent, primarily driven by increased activity related to deliveries of the autonomous underwater vehicle Hugin. Kongsberg Digital's growth of 55 per cent is driven by the ongoing roll-out of digital solutions, which also generates increased recurring revenues.

Expanding capacity

All business areas delivered significant growth in the quarter compared to Q2 last year.

"Such a growth rate requires both good management and planning, and considerable work has been done within the Group to scale the business in line with the increasing activity. This is a development that will continue, and KONGSBERG will be in the market to employ a significant number of people in the coming years. We are also investing in new and more efficient production and maintenance buildings. This winter, we started construction of the new missile factory, which will be completed in the summer of 2024, and in June this year we decided to invest around NOK 500 million in a new depot for maintenance of airframes for the Norwegian F-35 aircraft. From the new depot, we will also be able to carry out maintenance missions on other nations' F-35s," says Håøy.

Sustainability focus throughout the value chain

As previously announced, KONGSBERG has committed to Science Based Targets. This supports the company's overall focus on sustainability that extends from the supply chain to the customer stage.

"KONGSBERG will be a significant contributor to a more sustainable world. However, we see that the changes must happen faster than they do today. Our focus is both on our own operations and through our technology deliveries, which is an important tool for our customers to achieve their ambitions. Existing and new technology will be the most important enabler for the world to achieve its sustainability goals and "net zero" in 2050. KONGSBERG has both an existing product portfolio and ongoing development programmes that will make a difference on this journey," says Håøy.

Will continue to grow and deliver solid results

At the end of the first half of the year, the Group had an order backlog of NOK 68.1 billion, of which NOK 16.3 billion will be delivered already this year. In addition, KONGSBERG sees significant demand for the Group's broad technology portfolio from both civilian and military customers.

"We have a solid foundation with a record high order backlog. We have never had stronger market positions, both in established and new markets. This makes me confident that KONGSBERG will continue the growth journey we are on," concludes Håøy.

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Kongsberg (OSE-ticker: KOG) is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the energy, merchant, navy and defence and aerospace industries. Kongsberg has more than 12,000 employees in 39 countries and had total revenues of NOK 31.8bn in 2022.

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