Capital Markets Day: Raising our ambition

“Going from 40 to 120 billion NOK in ten years is ambitious. Given our unique position and our long-term market outlook, this is achievable,” Geir Håøy, President and CEO, announced at KONGBERG’s Capital Markets Day 2024.

On Tuesday, Håøy welcomed more than 110 analysts, investors, journalists, and employees to KONGSBERG’s first Capital Markets Day since 2022.

In addition to Håøy, the audience also heard from KONGSBERG’s CFO, Mette Toft Bjørgen, as well as business area-presidents, Eirik Lie, Kongsberg Defence & Aerospace, Lisa Edvardsen Haugan, Kongsberg Maritime, Martin Wien Fjell, Kongsberg Discovery, and Shane McArdle, Kongsberg Digital.

Uniquely positioned

KONGSBERG operates globally, with more than 13,500 skilled professionals across 40 countries. Each team member contributes to diverse markets: Defence, security, maritime, energy, space, and the underwater ocean domain. The last five years, from 2018 until today, KONGSBERG has tripled its revenue.

“We have not relied on market growth alone. We have succeeded due to our confidence in our people, technology, and solutions.” 

Now, Håøy is raising KONGSBERG’s ambition again, predicting to triple the revenues size of the company in 2033.

“The world has undergone significant changes the last couple of year, and our markets are experiencing an unprecedented surge in demand. This growth comprises both the need for enhanced national defence capabilities, and the need to actively address global challenges related to decarbonization and energy transition – all at the same time. KONGSBERG is uniquely positioned to meet these demands,” Håøy said in his opening speech at the Capital Markets Day.

Three explanations

Håøy points at three explanations which underlines KONGSBERG’s strong growth going forward.

“First, KONGSBERG’s offerings are directed towards solving two of the most urgent challenges the world is facing today: Security and sustainability. During my more than 30 years in the company I have never experienced such sustainable demand and solid outlook-demand, not only from one, but several growing markets.”

“Secondly, KONGSBERG has a deep domain knowledge and a comprehensive technology portfolio. We are experts in what we do and have skills and competence among the best in the world in all our areas.”

“And thirdly, the demand we see from the two drivers I mentioned, are not short-term fluctuations. It will take years for nations to build up their defence and security framework. At the same time, the world is aiming for net zero in 2050.”

The geopolitical situation

The geopolitical situation creates demand, not only for immediate action, but also a long-term strategy to ensure a secure and sustainable future. This growing commitment underscores the importance of strengthening collective defence capabilities in response to current security challenges in Europe.

By 2024, eighteen NATO member countries are expected to meet or exceed the alliance’s target of spending at least two percent of their GDP on defence, a significant increase from 2014. This includes Norway, which has proposed an historic defence spending increase over the next twelve years and will meet the two percent GDP commitment already this year, and is aiming for three percent towards the end of the 12-year period.

KONGSBERG already plays a crucial and expanding role in enhancing the security of NATO members and allies through its advanced technologies. “As a leading technology company, we are uniquely positioned with our portfolio to address current challenges and provide customers with the technology they need, expanding the foundation for export opportunities even further,” Håøy says.

Net-zero maritime technologies

As the world faces the escalating crisis of climate change, evidenced by extreme weather events, ice melting, and record-breaking temperatures, KONGSBERG’s expertise in advanced security and defence solutions, as well as technology to reduce the maritime and ocean industry’s climate footprint, is more relevant than ever.

“This is why complying with the Paris Agreement is essential for our collective efforts to combat climate change. Our innovations in energy- and net-zero maritime technologies, already serving a third of the world’s fleet, are well-proven and well-positioned to meet the ambitious goal set by the Paris Agreement, and the goals of reducing greenhouse gas emissions substantially by 2030 and net zero by 2050, set by the International Maritime Organization,” Håøy says.

New production capacity

Due to an unprecedented surge in demand and a large aftermarket, KONGSBERG is proactively enhancing its capabilities and investing in production capacity. Recently, KONGSBERG opened a new office in Kochi, India, and will soon open new office in Ålesund, and production facilities in both Kongsberg, Norway, and Adelaide, Australia.

“Our goal is to deliver technology that solves today’s critical challenges to create a better tomorrow. That’s why I strongly believe that KONGSBERG’s technologies are part of the solution,” Håøy says.

Watch the recorded webcast: