Kongsberg Aims to Triple Revenue by 2029 on Strong European Defence Demand
Kongsberg's Growth Strategy and Market Outlook
Revenue Targets and Investor Day Announcements
June 10 (Reuters) - Kongsberg aims to triple its revenue by 2029 and to more than quadruple it by 2033, driven by growing military investments in Europe, it said on Wednesday ahead of its investor day presentation.
Order Intake Surge and Market Drivers
The Norwegian defence and technology group's order intake and backlog have surged since Russia's invasion of Ukraine in 2022, supported by higher defence spending across Europe and strong demand for missiles, air-defence systems and other military equipment.
Financial Projections and Profit Margins
Kongsberg expects to grow its revenue from 33 billion Norwegian crowns ($3.5 billion) in 2025 to 100 billion crowns in 2029 and 150 billion crowns in 2033, while targeting an operating profit margin of more than 16%.
CEO Statement and Strategic Initiatives
• "Kongsberg's products and solutions are making a difference as countries invest to protect their people and critical infrastructure," CEO Eirik Lie, who succeeded Geir Håøy earlier this year, said in a statement
Production Capacity and Supply Chain Development
• The company can meet demand through investments in production capacity, recruitment, and the development of supply chains, Lie said
Product Demand and Market Expansion
• Kongsberg sees strong demand for air-defence systems, strike missiles, remote weapon stations and anti-drone systems
• It added it was well positioned to expand in emerging defence segments, including underwater operations and space activities
Corporate Developments and Recent Performance
• Kongsberg spun off its maritime business in April, separating the civilian-focused unit from its defence operations with backing from the Norwegian state
• In May, it forecast accelerating revenue growth for 2026, as its Q1 order intake more than doubled on strong demand for weapon stations and counter-drone systems
Currency Note
($1 = 9.5205 Norwegian crowns)
Reporting Credits
(Reporting by Marta Frąckowiak in Gdańsk; Editing by Milla Nissi-Prussak)
