Norwegian maker of missiles and marine equipment reports profit boom

By Steve Goldstein

Kongsberg shares have more than doubled this year

Shares of Kongsberg Gruppen rallied on Wednesday as the Norwegian maker of defense systems and marine equipment said it benefited both from increased defense spending and the green energy transition.

Kongsberg said its earnings before interest and tax in the second quarter rose to 1.45 billion kronor ($140 million) from 1.04 billion kronor, as revenue rose 21% to 9.61 billion kronor.

Analysts polled by Visible Alpha expected 1.17 billion kronor in EBIT on revenue of 10.97 billion kronor.

Its 17.3 billion kronor in order intake beat the analyst estimates of 12.83 billion kronor.

Kongsberg said there's particularly strong demand for missiles and air defense. During the quarter, it signed a contract to expand and modernize Spain's air-defense system, and also secured an air-defense contract in Norway. It's also inked a pact to deliver joint strike missiles to the U.S. Air Force for F-35A aircraft.

Kongsberg shares (NO:KOG) surged 8% and have more than doubled this year.

-Steve Goldstein

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07-10-24 0430ET

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