Letter to Stakeholders: A solid and eventful quarter

In the third quarter, we achieved profitable growth and signed key agreements that set the stage for continued strong development. Our strong profitability year to date demonstrates our effective scaling during this growth phase. In addition to fulfilling current commitments, we have taken steps to further increase capacity and entered into new development collaborations. KONGSBERG will contribute to security and a sustainable transition.

Text:Geir Håøy, President & CEO

We have completed a very solid quarter. Growth continues, and profitability is developing as planned. For KONGSBERG, the third quarter has historically shown somewhat higher margins than the remaining quarters of the year. The strong profitability in the quarter also demonstrates our ability to scale as operating revenues increase. However, it is important to note profitability will fluctuate depending on the projects being executed.

Our markets are undergoing substantial growth and transformation, and our positions have never been stronger. Security is a top priority in most countries, leading to a strong demand for our products and services.

At the same time, the maritime industry is undergoing a transition aimed at extensive energy efficiency and emission reductions. Technology and data access, both above and below water, are prerequisites for success, and we offer the solutions required for a successful transition.

The growth phase we are in requires capacity. Over the past few years, we have made significant investments in new hires, facilities, and the further development of our processes. In the third quarter, we announced that we will establish missile production capacity in both Australia and the USA. This reflects the growth and significant potential we see for our missiles going forward. Concurrently, we have also signed a contract with the Norwegian Defence Materiel Agency to develop the future German-Norwegian missile, the Supersonic Strike Missile, which is expected to be operational from the mid-2030s.

KONGSBERG is well-positioned, has a record-high order backlog, and market activity has never been higher. This provides a solid foundation for further growth.