Annual & Sustainability Report 2023: Making a Difference

Outlook 2024

In recent years, KONGSBERG has achieved solid results, demonstrated good adaptability, delivered significant growth and improved results.

At the end of 2023, the Group had an order backlog of NOK 88,600 million, of which NOK 30,800 million is for delivery in 2024. This provides a solid foundation for further growth. Order intake from the aftermarket is to a lesser extent included in the backlog. The order backlog in associates and framework agreements comes in addition to the reported backlog.

Secures solid activity

Kongsberg Maritime is exposed to both newbuild and aftermarket within a broad specter of segments, ranging from traditional commercial fleet to more advanced vessels carrying out complex marine operations. Many shipyards have close to full orderbooks for the coming years, meaning Kongsberg Maritime’s order backlog extends over time and secures solid activity. An aging vessel fleet and increased regulatory demands to reduce emissions yields a demand for upgrades. As a result of this, high activity is to be expected in 2024.

Increased production capacity

Kongsberg Defence & Aerospace has grown continuously in recent years and had an order backlog of NOK 65,400 million as of year-end 2023. The business area is well-positioned for several significant orders both in the short- and medium-term, which justifies expectations of further growth in the backlog. The profitability varies between different product segments and geographies. The mix of projects being delivered on is therefore an important driver of the profitability. The business area’s long-term EBITDA-target is 17 per cent in 2025, but it will fluctuate between quarters. Continued growth is expected, particularly driven by missile deliveries. To ensure capacity to deliver on existing orders and to accommodate the considerable demand, investments are being made in increased production capacity for missiles, and the new factory will be active in the summer of 2024.

“2023 was a strong year for KONGSBERG. We reached several milestones, strengthened our positions within sustainability and safety, and passed 40 billion NOK in revenues. Our success stems from years of focused and committed efforts." 

^{- Geir Håøy, President and CEO}

World-leading portfolio

Kongsberg Discovery has a broad, world-leading portfolio of technology combined with deep domain knowledge and critical software. These solutions are vital within fishery, marine research, marine operations, ocean-based energy production and the monitoring of critical infrastructure. All these segments are experiencing substantial demand, meaning sustained growth is likely.

Foundation for further growth

Kongsberg Digital grew both operating and recurring revenues significantly in 2023. Its digital solutions attract attention from the market, both in terms of streamlining operations and addressing climate concerns. The demand, coupled with existing framework agreements, lays the foundation for further growth. There will be significant investments in capacity, development and deployment of digital solutions also in 2024, but KONGSBERG aims for Kongsberg Digital to deliver positive EBITDA in the second half of 2024.

Today’s global landscape is turbulent and unpredictable. At the same time, we see great demand for enhanced energy efficiency, sustainable energy sources, security and surveillance. KONGSBERG’s products and systems can address these challenges. In combination with a strong order backlog and financial solidity, KONGSBERG is well-positioned to continue its growth in 2024 and beyond.