Kongsberg Gruppen remains attractive as it transitions into a pure-play aerospace and defense company, aligning with Europe's defense spending surge. The planned spin-off of the maritime business will sharpen Kongsberg's focus on defense, enhancing valuation and growth prospects amid global security trends. Q3 2025 results showed 12% sales growth, strong order intake, and a robust backlog, despite some margin erosion from business mix shifts.
Norwegian defence contractor Kongsberg Gruppen said on Thursday it plans to spin off its non-military business Kongsberg Maritime in an initial public offering on the Oslo Bourse.
Kongsberg Gruppen is well-positioned to benefit from strong demand in defense, marine, and digital twin solutions, driving robust sales and backlog growth. Q2 2025 results showed 20% sales growth, with aerospace and defense leading, and margins expanding despite some segment fluctuations. Upward revisions in EBITDA and free cash flow estimates, plus a strong net cash position, enhance the stock's investment appeal despite a premium valuation.