By Marta Frackowiak
(Reuters) -Norway’s Kongsberg stated on Thursday its order consumption and earnings soared within the first quarter, pushed by demand for missiles and air defence programs at a time when European nations are stepping up their defence spending.
Kongsberg noticed its quarterly order consumption rise 63% from a 12 months earlier to twenty.74 billion Norwegian crowns ($2 billion), half of which was for the defence and aerospace unit.
Its shares rose 6% in early buying and selling and had been amongst prime performers on Europe’s benchmark STOXX 600 index as of 0809 GMT.
“We see already the impression of the bigger defence spendings in Europe,” Kongsberg’s CEO Geir Håøy stated throughout a convention name with analysts and journalists, although he added it will take time for the corporate to see a significant impression from that.
European nations are bolstering their defence budgets and reaffirming their assist for Ukraine, involved that the U.S. beneath President Donald Trump could not be as invested in Europe’s safety.
Håøy additionally stated Kongsberg was already nicely established in Europe, which is its most essential market.
The corporate’s exports to the US consist principally of defence merchandise for the U.S. armed forces, which fall beneath the Protection Federal Acquisition Regulation Complement (DFARS) laws and as such are topic to responsibility free imports, finance chief Mette Toft Bjørgen stated within the name.
The defence and aerospace division, Kongsberg’s second greatest making up round 40% of its income, final 12 months secured deliveries of crucial gear to Ukraine whereas additionally contributing to the completion of F-16 fighter jets and coaching of Ukrainian troopers on its programs.
The unit’s order consumption greater than doubled over 2024 amid surging demand for defence gear.
“In recent times, the demand for missile and air defence programs has contributed to a major improve within the order backlog and has been an essential driver for our capability expansions,” Håøy stated within the earnings assertion.
Kongsberg’s working earnings earlier than depreciation and amortisation (EBITDA) grew 81% to three.29 billion crowns within the first quarter, additionally boosted by gross sales development in its maritime division which generated round half of its income final 12 months.
($1 = 10.3497 Norwegian crowns)
(Reporting by Marta Frąckowiak in Gdansk; Enhancing by Milla Nissi-Prussak)
