Kongsberg’s NOK 157.5 billion backlog and NATO rearmament support strong compounding, but its 55.4x P/E demands flawless execution.
Overview
Kongsberg Gruppen has completed a major transformation into a focused European defense and aerospace technology company. The April 22, 2026 demerger of Kongsberg Maritime, followed by KMAR’s April 23 listing, leaves Defence Systems, Missiles & Aerostructures, and Discovery as the continuing operations. The portfolio combines NASAMS air defense, C-UAS, NSM/JSM precision missiles, F-35 aerostructures, subsea monitoring, and space ground-station services, serving sovereign NATO customers and major primes such as Raytheon. **The investment case is anchored by a NOK 157.5 billion backlog and powerful NATO rearmament tailwinds.** Q2 2026 revenue reached a record NOK 10,389 million, up 31.3%, while EBIT rose 48.9% to NOK 1,669 million and margin expanded 190 basis points to 16.1%. Management targets NOK 100 billion of revenue in 2029, NOK 150 billion in 2033, and an EBIT margin above 16% through the cycle. The stock nevertheless trades at a demanding trailing P/E of 55.4x. A NOK 284.50 close after a 5.01% earnings-day decline reflects concerns over margin compression, cash falling to NOK 4.9 billion, and order-intake timing. The long-term outlook is compelling, but near-term valuation appears close to fair value; execution, factory scaling, and the Zone 5 integration are the principal catalysts and risks.