Kongsberg orders surge to 23.3 billion kroner in third quarter as revenue rises 50%
Key Facts
KONGSBERG said order intake rose to 23.3 billion Norwegian kroner in the third quarter of 2026, compared with 9.5 billion in the same period a year earlier, a jump reflecting strong demand for its products. The company said in its quarterly report that its book-to-bill ratio was 2.06, meaning the value of new orders exceeded billings during the quarter. Revenue was 11.3 billion kroner, up 50%, while earnings before interest and taxes rose 66% to 1.9 billion kroner. The results put the accumulated order backlog at the center of the company's performance, as it continues to book more orders than it bills to customers. The company also linked demand growth to its products, without attributing it in the report to rising geopolitical tensions.
The order backlog reached a record 174.2 billion kroner at the end of September, after increasing by 16.7 billion during the quarter. Since the start of 2026, order intake has totaled about 67 billion kroner, putting the order book on an upward trajectory for the year. The backlog stood at 157.54 billion kroner at the end of the second quarter, according to the company's previous statement. In that quarter, new orders totaled 17.067 billion kroner, compared with 11.188 billion a year earlier, while revenue rose 31% to 10.389 billion kroner. The move from the second quarter to the third shows continued growth in orders and revenue, with the accumulated backlog rising to a record. The company describes this backlog as extending over several years and providing predictability for future development, while the practical priority remains delivering on accumulated contracts.
Chief Executive Erik Lee said the company is expanding production capacity, including in Poland, to keep pace with demand, adding: "We are expanding capacity, including in Poland, to meet rising demand. Our focus now is on executing our strong order backlog." The priority comes as the company said interest remained strong in its missiles, air defense systems and remote weapon stations. In July, the U.S. Air Force ordered additional JSM missiles for its F-35 fleet, and KONGSBERG later in the quarter signed a framework agreement with the U.S. Marine Corps to support production and maintenance of the NSM missile. In October, Denmark announced its intention to buy JSM missiles for use on F-35 aircraft, becoming the seventh country to announce its acquisition of the missile. These developments combine existing contracts and purchase announcements, while the company remains tasked with turning demand into production and deliveries.
Defense contracts included an agreement worth 10 billion kroner with Belgium to supply the NASAMS system, making it the eighteenth country to order it. KONGSBERG also secured a U.S. contract worth 54 million dollars during the quarter related to autonomous underwater capabilities. Zone 5 was selected for a U.S. Navy program worth 65 million dollars during the same period, adding naval activity to a list of demand drivers that includes missiles and air defense. In the second quarter, the company said most new orders were tied to three separate contracts for the JSM missile. These contracts show a range of announced business areas, from air defense systems and missiles to autonomous naval capabilities. The company's growth ambitions also rely on increasing production, not orders alone.
Kongsberg announced in June an ambition to increase revenue from 33 billion kroner in 2025 to 100 billion in 2029 and then 150 billion in 2033, while targeting an operating margin above 16%. In October, it announced the establishment of a manufacturing and maintenance facility in Poland for counter-drone systems, with an investment exceeding 200 million zlotys. The company said the facility would provide more than 100 long-term jobs once it reaches full capacity, and that serial production could begin in the first half of 2028. The geographic expansion plan links increased production capacity with the chief executive's stated focus on executing accumulated orders. The next financial milestone on the company's calendar is its fourth-quarter results presentation on 11 February 2027.