Financial Performance
Kongsberg Gruppen ASA reported second‑quarter 2026 core profit (EBIT) of NOK 1.67 billion, delivering a 16.1 % EBIT margin. This margin was 5 percentage points below the consensus estimate of approximately 17 %. Revenue for the quarter was NOK 10.39 billion, matching analyst forecasts.
Order Intake and Book‑to‑Bill
Quarterly order intake reached NOK 17.1 billion, roughly a 50 % year‑on‑year increase. However, the book‑to‑bill ratio declined to 1.6 times, indicating a slowdown from 2.9 times in the first quarter and 2.6 times in the fourth quarter of 2025.
Segment Margins
The margin shortfall was concentrated in the Defence Systems segment, where the EBIT margin fell by 185 basis points year‑on‑year to 17.7 %, 2 percentage points under consensus. The Discovery segment also missed, with its margin down 230 basis points. Missiles & Aerostructures performed marginally ahead of consensus.
Backlog and Guidance
Kongsberg reaffirmed its full‑year 2026 guidance of revenue growth above the 2025 level, implying more than 30 % growth versus the company consensus of 34 %. The group reported a backlog of NOK 158 billion, a 4 % increase quarter‑on‑quarter, and highlighted NOK 21 billion of backlog coverage for the second half of the year, representing 86 % of the full‑year sales estimate.
Market Reaction and Valuation
Following the release, Kongsberg shares fell approximately 6 %. Morgan Stanley rated the stock “underweight” with a price target of NOK 330 and noted that the results could continue to challenge the current 40 % valuation premium the shares carry relative to peers. The broker also flagged margin progression as a key discussion point, referencing the company’s long‑term margin target of above 16 % set at its Capital Markets Day.