Latest Quarterly Earnings Summary (Q2 2026)
In Q2 2026, Kongsberg Gruppen achieved a significant financial milestone, surpassing NOK 10 billion in quarterly revenue for the first time.Total revenue reached NOK 10.4 billion, representing a 31% increase year-over-year compared to Q2 2025. Operating profit (EBIT) rose 49% year-over-year to NOK 1.7 billion, expanding the EBIT margin to 16.1% (up from 14.2% in Q2 2025) due to operational leverage and strong pricing power.Order intake reached NOK 17.1 billion for the quarter, driving the total order backlog to a record high of NOK 158 billion.
Revenue Breakdown by Division, Product, and Region
Kongsberg Gruppen operates primarily across three core divisions:
- Defence Systems (approx. 49.0% of revenue, NOK 5.1 billion):Provides integrated air defence systems (such as NASAMS), remote weapon stations (PROTECTOR series), and tactical communications.Revenue grew 53% year-over-year, supported by heightened European defense procurement.
- Missiles & Aerostructures (approx. 27.9% of revenue, NOK 2.9 billion):Produces anti-ship and precision-strike missiles (Naval Strike Missile – NSM and Joint Strike Missile – JSM) along with composite aerostructures for the F-35 aircraft. Revenue grew 19% year-over-year as production scaling continued on schedule.
- Discovery (approx. 22.1% of revenue, NOK 2.3 billion): Specializes in hydroacoustics, subsea mapping, underwater robotics, and ocean sensor technologies. Revenue increased by 21% year-over-year.
Regional Distribution & Overview:
- International Markets (approx. 80% of total revenue): International markets represent the vast majority of operations. Europe and North America form the primary growth vectors, driven by NATO countries expanding missile and air defence inventories. Asia-Pacific and the Middle East represent secondary expansion zones, with major naval missile orders from Australia and air defence systems contracts in Kuwait.
- Domestic Market (Norway, approx. 20% of total revenue): Provides essential baseline revenue via continuous national defence modernization programs and subsea research initiatives.
Quarterly Changes, Next Quarter Focus, and Future Outlook
Quarter-over-Quarter Changes:
Operating cash and cash equivalents decreased from NOK 19.3 billion at the end of Q1 2026 to NOK 4.9 billion at the end of Q2 2026. This reduction was driven by dividend distributions, bond repayments, and the strategic acquisition of Zone 5.
Next Quarter Focus:
- Zone 5 Integration:Integrating Zone 5 is expected to yield single-digit profit margins over the next 12–24 months before normalizing, which will require active cost management.
- Backlog Execution:Delivering NOK 21 billion out of the record backlog scheduled for completion during H2 2026.
- Supply Chain Bottlenecks: Securing critical raw materials and electronics components to maintain delivery timetables across missile manufacturing facilities in Norway, the US, Australia, and Poland.
Future Outlook:
The record backlog of NOK 158 billion provides long-term financial visibility.Of this backlog, NOK 44 billion is scheduled for delivery in 2027 and NOK 92 billion in 2028 and beyond.Over the medium term, the acquisition of Zone 5 is targeted to generate over NOK 10 billion in annual revenue.
Share Price Movements (Last 3 Months) and Market Drivers
Over the last three months (late May to late August 2026), Kongsberg Gruppen’s stock price (OSL: KOG) traded within a range of approximately NOK 270.00 to NOK 335.00, settling around NOK 312.00 to NOK 315.00.
- May to Early July 2026: Shares traded higher toward NOK 335.00 supported by strong geopolitical demand for defence systems and expectations of solid Q2 financial performance.
- Mid-July 2026: Following the Q2 2026 earnings release, the stock experienced a temporary pullback toward NOK 270.00-275.00. Despite beating revenue and profit expectations, investors reacted to the reduced cash position following the acquisition of Zone 5 and the short-term margin compression expected during Zone 5’s integration phase.
- August 2026: The stock steadily rebounded toward NOK 312.00–315.00 as market confidence returned, driven by the record NOK 158 billion backlog and sustained NATO procurement cycles.
Information Sources
- https://www.kongsberg.com/investor-relations/shares/
- https://newsweb.oslobors.no/message/678041
- https://www.investing.com/news/transcripts/earnings-call-transcript-kongsberg-beats-q2-2026-forecasts-as-revenue-tops-10-billion-93CH-4787491
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