Kongsberg Gruppen ASA is charging into two new frontiers at once — scaling up drone manufacturing for Ukraine while preparing to prove its mettle as a standalone defense and technology group. The Norwegian defense contractor signed a landmark agreement in Kyiv to establish a joint venture with the Ukrainian government, aiming to produce several thousand medium-range attack drones on Norwegian soil by this summer. The financing comes from the Norwegian government, on top of the roughly $7 billion already earmarked for Ukrainian defense in 2026.
The venture, a partnership between Kongsberg Defence & Aerospace and Ukrainian authorities, taps into technology proven in active combat. The timeline is aggressive: first systems are expected to reach the front lines within months. The deal also includes a framework for research and development focused on battlefield-tested innovations. For Kongsberg, the project opens a fast-growing segment in unmanned systems and deepens its role as a linchpin of Western defense efforts.
A New Corporate Structure Under the Microscope
The timing of the Ukrainian deal coincides with a profound internal transformation. On April 23, Kongsberg Maritime ASA began trading as a separate entity on the Oslo Børs, following a 1:1 spin-off that gave shareholders one share in the new maritime company for each Kongsberg share they held. The parent company now focuses exclusively on defense, aerospace, digital technologies, and exploration systems.
The first trading day after the split opened at around NOK 333. The stock last closed at NOK 310, up roughly two percent from the prior session. But the broader picture is more mixed: Kongsberg shares dropped 8.8 percent in April, underperforming the OSEBX benchmark. Pareto Securities views the decline as temporary and sees the current level as a buying opportunity.
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Analyst Recalibration and a $1.5 Billion Backstop
The spin-off has forced analysts to revise their models. Several houses have trimmed price targets to around NOK 372 to reflect the removal of the maritime division from the earnings profile. Still, sentiment remains broadly positive: 54 percent of analysts rate the stock a buy, and 38 percent recommend holding. The reassessment is ongoing, but the underlying business provides a solid foundation.
Kongsberg Defence & Aerospace generated revenue of NOK 25 billion in 2025, up 32 percent year-over-year, with an EBIT margin of 16.1 percent. The group’s total order intake for 2025 reached NOK 87.6 billion, and the overall order backlog swelled 23 percent to NOK 157.4 billion. Recent contract wins include a $1.5 billion framework agreement for the US Army’s CROWS program and a $240 million order for the Joint Strike Missile from the US Air Force.
Production Expansion on Three Continents
Capacity expansion is running in parallel with the strategic pivot. In January, construction began on a missile manufacturing facility in Virginia, with an investment of roughly $100 million. A factory in Newcastle, Australia, is slated to start producing Naval Strike Missiles and Joint Strike Missiles by 2027. The Norwegian state retains a 50 percent stake in Kongsberg Gruppen, providing stability but also tying the company to political dynamics.
The First Earnings Test
All eyes are now on May 6, when Kongsberg will release its first quarterly results as a pure defense and technology company. The report, due at 8:15 AM CET, will reveal how the adjusted group earnings look without the maritime segment. The bar is high: in the same period last year, Kongsberg surprised with 28 percent revenue growth. The Q1 numbers will test whether the valuation, after the recent dip, truly offers an attractive entry point — and whether the new structure can sustain the momentum without the maritime cushion.
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