Kongsberg Gruppen falls 3.4% after 2Q earnings

Kongsberg Gruppen falls 3.4% after 2Q earnings

Kongsberg Gruppen, a leading provider of defense and maritime technology solutions, reported its second-quarter (Q2) 2025 earnings, which saw a 3.4% decline in stock price. The company announced revenues of MNOK 13,899, representing a 20% increase from Q2 2024, and an EBIT margin of 13.8% (adjusted for a gain from the sale of the steering gear and rudder business).

The growth was primarily driven by increased deliveries of missiles and air defense systems from the defense segment, solutions for the newbuild market in the maritime sector, and high activity related to the delivery of underwater technology. The company also reported a strong order intake, with the defense segment signing Germany as the fifth customer for the Joint Strike Missile (JSM), increasing the order backlog to NOK 109 billion.

Despite the positive financial performance, the stock price fell due to market sentiment and expectations. Investors may have been disappointed by the slight reduction in net interest-bearing debt, which stood at NOK 9,072 at the end of Q2 2025, compared to NOK 11,302 at the end of 2024. Additionally, the company's long-term issuer rating of A- with a "positive outlook" from Nordic Credit Rating may have contributed to the sell-off.

Kongsberg Gruppen remains resilient with a substantial order backlog and a strong market position in defense and maritime technology. The company's strategic portfolio assessment and the potential transaction in Kongsberg Digital could also impact investor sentiment in the coming quarters.

References:
[1] https://www.marketscreener.com/quote/stock/KONGSBERG-GRUPPEN-ASA-1413189/news/Kongsberg-Gruppen-KOG-Quarterly-report-Q2-2025-50464552/