Kongsberg Gruppen After Earnings: The Company Catches Up with the Sector
Date: 6 February 2026
Key Takeaways
- Earnings well above consensus
- Record contract from Poland
- Margin expansion
- Company split into segments
Company Overview
Kongsberg Gruppen ASA, a Norwegian defense manufacturer, has reported impressive earnings that have led to a significant increase in its stock price, rising approximately 15% in a single trading session. This surge comes after a period of stagnation in valuation, despite the broader European defense sector experiencing growth due to increased military spending.
Financial Performance
The company's Q4 results showcased a strong performance:
- Revenue increased to NOK 16.8 billion, surpassing market expectations.
- Operating profit reached NOK 2.46 billion, exceeding consensus estimates by 5% and 22% respectively.
- Operating margin improved from 12.7% to 14.7%.
The "Defence and Aerospace" segment saw a remarkable 44% year-on-year sales increase, with margins rising to 18.7%. This growth is attributed to heightened demand for air-defense systems and airspace surveillance, particularly in response to threats from Russian drones.
Major Contracts and Future Outlook
Kongsberg has secured a significant contract from Poland, being selected to deliver the "San" system aimed at protecting Polish airspace. The total project value is approximately PLN 15 billion (around NOK 40 billion), although the exact share for Kongsberg remains unspecified.
Management has also committed to a generous dividend policy, reflecting the record profits. Additionally, the company plans to carve out its "Maritime" segment, which has lower margins, to streamline operations and focus on more profitable areas.
Overall, Kongsberg's management is optimistic about ongoing rearmament efforts, which are expected to continue benefiting the company and its shareholders.