Kongsberg passes ten billion kroner of revenue for the first time and the share still falls

The Norwegian defence and technology group Kongsberg Gruppen generated revenue of 10.4 billion Norwegian kroner in the second quarter of 2026, up 31 percent on the year before. It was the first quarter in the history of the company with revenue above ten billion kroner.

Operating profit reached 1.7 billion kroner at a margin of 16.1 percent, after 14.2 percent in the year earlier quarter. In absolute terms it rose around 49 percent and therefore faster than revenue.

The share nevertheless gave way after the release.

The short version

• Revenue rose 31 percent in the second quarter of 2026 to 10.4 billion Norwegian kroner, the first quarter above ten billion.
• Order intake was 17.1 billion kroner, which gives a ratio of 1.6 to revenue.
• The order book reached a record 157.5 billion kroner.

Order intake exceeds revenue by 60 percent

The decisive measure at a defence group is not the revenue of a quarter but the ratio of new orders to delivered work.

Kongsberg booked order intake of 17.1 billion kroner in the quarter on revenue of 10.4 billion. That gives a ratio of 1.6.

A value above one means that more comes in than is worked off. The order book therefore grows even though the company delivers more than ever before.

The book reached a record of 157.5 billion kroner. Of that amount, 13 percent is scheduled for 2026, 28 percent for 2027 and 59 percent for 2028 and later.

That distribution describes the particularity of the industry. Defence contracts run over many years, which gives the company a planning certainty that is barely achievable in any other industrial sector.

Not included in that figure is a programme worth around 400 million dollars for the delivery of air defence systems to Kuwait.

One weapon system carries the order intake

Most of the new orders go back to a single product, an air to ground missile. Three separate contracts for it were signed in the quarter, with a total value of around eleven billion kroner.

Canada became the sixth nation to be a customer for that system.

That concentration cuts both ways. It shows a strong market position but makes order intake dependent on the decisions of individual governments.

Canada has also announced negotiations with Germany on the purchase of submarines. Kongsberg is involved in that programme as supplier of the combat system. Belgium chose the air defence system of the group. On top of that came an order worth 200 million kroner for underwater surveillance.

All three divisions grow

Broken down, revenue in defence systems rose 53 percent to 5.1 billion kroner. Missiles and aerospace structures gained 19 percent to 2.9 billion, and the discovery division 21 percent to 2.3 billion.

The gross margin was 57.7 percent.

Of the order book, 77 billion kroner fall on defence systems, 68 billion on missiles and aerospace structures and twelve billion on the discovery division.

A revoked export licence weighs

One event from the quarter deserves attention. The Norwegian government has revoked an export licence for a contract to Malaysia.

The group has included the corresponding effects in its figures and points out that offsetting one off effects of a similar size arose. The finance chief declined to quantify them because of ongoing negotiations.

The case shows a risk that exists structurally at defence companies. An order in the book is only as secure as the political permission to fulfil it.

A tripling of revenue by 2029 targeted

For the full year the group expects revenue growth above the level of 2025. On the margin management points out that it varies with the project and product mix.

The long term targets are ambitious. By 2029 revenue is to be tripled to 100 billion kroner, and by 2033 to 150 billion.

For a new business area more than ten billion kroner of annual revenue are expected in the medium term, though with single digit margins in the next twelve to 24 months.

Missile factories are being built in parallel in the United States and in Australia.

In the first quarter order intake had been 27 billion kroner, after 13 billion in the same period last year. Revenue there was 9.2 billion kroner at a rise of 26 percent, and operating profit 1.537 billion kroner after an increase of 55 percent.

As drivers the group names the increased defence spending of allied states and the build out of European production capacity.

Frequently asked questions

Why does order intake count for more than revenue

A ratio above one means that more comes in than is worked off. At 17.1 billion kroner of order intake and 10.4 billion of revenue it stands at 1.6. The book therefore grows even though the company delivers more than ever before.

Where do the new orders come from

Most go back to a single air to ground missile. Three separate contracts for it were signed in the quarter, with a total value of around eleven billion kroner. Canada became the sixth nation to be a customer for that system.

What risk does the Malaysia case show

The Norwegian government has revoked an export licence for a contract to Malaysia. The case shows a risk that exists structurally at defence companies. An order in the book is only as secure as the political permission to fulfil it.

This analysis is for information only and is not investment advice.