Growth in Operating Revenues and Profitability

 

KONGSBERG (OSE: KOG) delivered a solid increase in both operating revenues and
profitability, achieving a strong order intake in 2024. The company concludes
the year with a record-high order backlog of NOK 128 billion, which is 44 per
cent higher than it was a year ago. The Board of Directors proposes to the
General Meeting a dividend of NOK 3,87 billion, equivalent to NOK 22 per share.

2024*:
-	The order intake was BNOK 87.8 corresponding to a book/bill of 1.8
-	Operating revenue was BNOK 48.9 compared to BNOK 40.6, an increase of 20 %
-	EBIT was BNOK 6.5, up from BNOK 4.6 
-	EBIT-margin was 13.3 % compared to 11.3 %
-	EBITDA was BNOK 8.0, up from BNOK 6.0
-	EBITDA-margin was 16.4 % compared to 14.9 % 
*Compared to 2023

4th quarter*:
-	The order intake was BNOK 44.8 compared to BNOK 31.5
-	Operating revenue was BNOK 13.9 compared to BNOK 11.9, an increase of 17 %
-	EBIT was BNOK 1.7, up from BNOK 1.3
-	EBIT-margin was 12.4 %, up from 10.7 %
-	EBITDA was BNOK 2.1, up from BNOK 1.7
-	EBITDA-margin was 15.4 % compared to 14.0 %
*Compared to 4th quarter 2023
 
"We have completed another strong year and a quarter with increased activity
across all business areas and solid profitability. Order intake was strong
throughout the Group, and we have secured significant contracts in 2024," says
Geir Håøy, President and CEO of KONGSBERG.

Based on this year's solid results and the Group's strong balance sheet, the
Board of Directors proposes a dividend of NOK 22 per share, of which 10 NOK is
an ordinary dividend and NOK 12 is proposed in addition to this. A total
dividend payment of NOK 3,87 billion is proposed to the Annual General Meeting
on 8 May 2025. The payment will be made in two tranches, one in May and one in
October.

"Our dividend policy dictates that we should have stable or increasing
dividends. The Board of Directors therefore proposes an ordinary dividend of NOK
10 per share, representing an increase of NOK 3 from last year's level. In light
of the strong financial performance, we propose an additional dividend of NOK
12. The total dividend of NOK 22 per share also reflects the positive outlook
for the company, says Chair of the Board, Eivind Reiten.

Operating revenues in 4th quarter was MNOK 13 909 compared to MNOK 11 936 in the
same quarter last year, an increase of 17 per cent. There was solid growth in
all business areas compared to the fourth quarter of 2023. Order intake in Q4
was MNOK 44 834, compared to MNOK 31 461 in the same quarter last year. This
gave a book-to-bill for the quarter of 3,22. EBIT in Q4 was MNOK 1 730,
corresponding to an EBIT margin of 12,4 per cent compared to MNOK 1 273 (10,7
per cent) in the same quarter last year. Advantageous project mix, volume
effects and efficient project execution contributed to the increased margin.
Accumulated EBIT in 2024 was MNOK 6 507, corresponding to an EBIT margin of 13,3
per cent, an increase from MNOK 4 600 (11,3 per cent) in the same period in
2023.

Driving growth across all business areas this quarter
Kongsberg Maritime increased operating revenues from both newbuilds and the
aftermarket. Operating revenues were MNOK 6 896 in Q4, an increase of 23 per
cent compared to the same quarter last year. All divisions increased their
operating revenues, and there was high activity in deliveries to both the
existing fleet and new vessels. The increase in deliveries to new vessels in the
quarter was mainly driven by deliveries to LNG transport vessels. Order intake
from this vessel segment has been solid for a long time, and the business area's
technology deliveries have a strong market position in this segment.

Kongsberg Defence & Aerospace increased its operating revenues to MNOK 5 527 in
Q4, up 10 per cent from the same quarter last year. A large part of the growth
in the quarter was driven by increased activity in missile projects. Deliveries
of weapon stations to the U.S. CROWS program continued at a high pace, and there
was also strong activity related to missile deliveries. 

Kongsberg Discovery's operating revenues were MNOK 1 241 in Q4, an increase of 8
per cent compared to the same quarter last year. The main drivers were
deliveries of mapping and positioning systems to commercial customers, research
institutions, and defence customers. The first deliveries of the new drone
detection radar were also completed during the quarter.

Kongsberg Digital's operating revenues were MNOK 514 in Q4, up 17 per cent from
the same period in 2023. Recurring operating revenues were MNOK 240 in the
quarter, up from MNOK 206 in Q4 2023. The growth compared to the 4th quarter
last year was mainly driven by strong development in the sale of simulators,
both to energy and maritime customers, as well as an increased number of
Kognitwin dynamic twin solutions in operation. 
Market-driven strategic initiatives

In January, we announced the acquisition of Naxys Technologies.
"Naxys Technologies delivers technology based on passive hydroacoustics,
enabling oil and gas companies to receive rapid alerts in the event of potential
leaks. Additionally, the company's technology is relevant for marine research,
monitoring of marine life, and defence applications to detect various threats.
This represents an important expansion of Kongsberg Discovery's already broad
portfolio of advanced underwater technology," says Håøy.

The Group also announced that Kongsberg Digital's maritime business will be
integrated into Kongsberg Maritime.

"By consolidating our digital maritime initiatives within Kongsberg Maritime's
integrated portfolio of solutions, we are further adapting to meet our
customers' needs. This reinforces our goal of being a leading player in the
decarbonization and digitalization of the maritime industry," says Håøy.

Strong market position
KONGSBERG is well-positioned within market trends with significant growth
potential. To meet future demand and deliver on the existing order backlog,
capacity is being expanded both in Norway and internationally.
 
"KONGSBERG is well-positioned, has a high order backlog and market activity is
all-time high. Today's global landscape is turbulent and unpredictable. It is
crucial that we can handle rapid changes and balance well between short-term and
long-term strategic choices. We have the right people with the right motivation,
and I am confident we will continue to deliver. I am continually impressed by
what we achieve together with our partners. The trust we have from our customers
is a result of the dedication and hard work of our 14,600 employees," concludes
Håøy.
 

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