KONGSBERG reports record-high order backlog and doubles dividend

KONGSBERG, a leading technology group in Norway, announced its financial results for 2023, showing strong growth, profitability, and order intake. The company also proposed a dividend of NOK 14 per share, which is almost double from last year.

The company’s order intake for 2023 was NOK 65.4 billion, corresponding to a book/bill ratio of 1.61. This means that the company received more orders than it delivered, resulting in a record-high order backlog of NOK 88.6 billion at the end of the year. The order backlog represents the future revenue potential of the company, and gives visibility and stability for the coming years.

The company’s operating revenues for 2023 increased by 28 per cent to NOK 40.6 billion, compared to NOK 31.8 billion in 2022. The company’s earnings before interest and taxes (EBIT) also improved by 39 per cent to NOK 4.6 billion, with an EBIT margin of 11.3 per cent. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 30 per cent to NOK 6 billion, with an EBITDA margin of 14.9 per cent.

The company’s performance was driven by strong growth in all its business areas: Kongsberg Maritime, Kongsberg Defence & Aerospace, Kongsberg Discovery, and Kongsberg Digital. The company also secured several large contracts during the year, such as the NSM coastal defence system to Poland, worth NOK 16 billion, which became effective in the fourth quarter.

Based on the solid results and the strong balance sheet, the company’s board proposed a dividend of NOK 14 per share, of which NOK 7 is in excess of the company’s ordinary dividend policy. The total dividend payment will be NOK 2.46 billion, and will be made in two instalments, in May and October. The company’s chairman, Eivind Reiten, said that the dividend increase reflects the positive future prospects of the company, and that the company’s dividend policy aims to have stable or increasing ordinary dividends.

The company expects to continue its growth trajectory in 2024 and beyond, as it has a diversified portfolio of products and services in various segments and markets. The company’s main growth drivers are the demand for sustainable and digital solutions, as well as the increasing defence spending in NATO and allied countries. The company is also investing in increased production capacity for missiles, which will be operational in summer 2024, to meet the significant demand for its missile systems.

KONGSBERG is a technology group that delivers advanced and reliable solutions that improve safety, security, and performance in complex operations and under extreme conditions. The company operates in four business areas: maritime, defence, discovery, and digital. The company has more than 11,000 employees in 40 countries, and had revenues of NOK 40.6 billion in 2023.

“KONGSBERG achieved a milestone by surpassing NOK 40 billion in revenue in 2023. This accomplishment is a testament to our unwavering commitment to innovation and the tireless efforts of our dedicated employees over the years. The world is facing significant challenges related to security, climate and sustainability. Our products and systems can help solve many of these challenges and have resulted in a significant influx of orders throughout the year. At the end of 2023 we had a NOK 88.6 billion order backlog, in addition to several significant framework agreements”, says President and CEO of KONGSBERG Geir Håøy”.

“The results and order intake in Q4 continued the trend from recent years. We had record high activity levels and we signed contracts of considerable size throughout the quarter. Kongsberg Maritime’s orders for new vessels were reduced in the quarter, but order intake from the aftermarket continues to increase. Kongsberg Defence & Aerospace delivered an all-time high order intake quarter of almost NOK 25 billion. Kongsberg Discovery continues its success towards both national and commercial customers. Kongsberg Digital continues to grow and increased both the number of installations and users of the digital solutions”, says Håøy.

“KONGSBERG is an ocean space expert, and we have solutions that reduce the climate footprint of the maritime industry. Our sensor and robotics solutions are important for utilizing and taking care of the resources found in the sea. We have security and defence solutions that are in demand from many parts of the world, and we have digital expertise in both the energy and maritime sectors. At the same time, we live in a world that faces many challenges where technology will be an important part of the solution. We have a record-high order backlog and have never been more strongly positioned. We continue to invest significantly, both in expertise and capacity. This provides a good basis for growth also in 2024,” concludes Håøy.

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