This article was first published in our Annual Report 2024.
We are a powerful innovation hub, combining creativity, innovation, research and development with extensive industrial experience to bring forth new products, technology and solutions. The triangular cooperation between the armed forces, the research establishment and the defence industry in Norway has produced unique and world-leading technology.
Kongsberg Defence & Aerospace helps build strong communities by creating attractive jobs, safe workplaces and great value for employees, owners and our many thousands of suppliers throughout Norway and in the countries where we are present.
Collaboration is one of our four values and an important contributor to our international success in recent years. We work closely with the largest players in the defence industry to develop and deliver products and in joint projects.
Outlook
Kongsberg Defence & Aerospace has grown significantly in recent years.
The world is characterized by increased geopolitical uncertainty, with the war in Ukraine now in its fourth year. Defence budgets are increasing in Norway, in NATO countries and among other allies. We expect defence investments to increase further in the coming years. NATO countries are expected to raise their investment ambitions from the current floor of 2 per cent.
The increase in defence budgets reinforces a trend that has lasted for a decade. It is broad-based and affects several of our core products – from air defence to missiles and weapons stations. New investments in increased defence capabilities contributed to Kongsberg Defence & Aerospace's order backlog reaching a record high of NOK 100 billion in 2024.
In the future, we plan to continue to invest internationally, driven by, among other things, the demands and expectations of more customers for industrial collaboration across borders. We will continue to strengthen our presence in countries such as Australia, Canada and the USA.
Profitability varies between different product groups and geographies. The composition of projects in delivery is therefore an important driver of profitability in the business area.
We are well positioned for several significant orders in the short and medium term, which gives expectations of an increased order backlog over the next few years. The high level of activity has also created value locally where we are present, via new jobs and high activity through our supply chains.
Over the past three years, we have hired 1,839 new employees. We expect to continue recruiting in the coming years to handle the increased workload.
With a solid and motivated organization and a good position in our most important markets, Kongsberg Defence & Aerospace is well equipped to seize the opportunities that arise in a rapidly growing market.
