GuruFocus -
- Revenue: NOK48.9 billion for 2024, a 20% increase from 2023.
- Order Intake: NOK87.8 billion in 2024, with a book-to-bill ratio of 1.8.
- Order Backlog: NOK127.9 billion entering 2025.
- EBIT: NOK6.5 billion for 2024, with an operating margin of 13.3%.
- Q4 Revenue: NOK13.9 billion, a 17% increase from Q4 2023.
- Q4 EBIT: NOK1.7 billion, with a margin of 12.4%.
- Net Earnings: NOK1.47 billion for Q4, with earnings per share at NOK8.27.
- Cash Position: NOK14.3 billion at year-end 2024.
- Dividend Proposal: Total (EPA:TTEF) dividend of NOK22 per share for 2024.
- Kongsberg Maritime Revenue Growth: 23% year-on-year for 2024.
- Kongsberg Defence and Aerospace EBIT Margin: 15.2% for 2024.
- Kongsberg Discovery Revenue Growth: 8% in Q4 2024.
- Kongsberg Digital Revenue Growth: 17% in Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kongsberg Gruppen ASA (NSKFF) achieved a significant order intake of NOK87.8 billion in 2024, resulting in a strong book-to-bill ratio of 1.8.
- The company reported a 20% increase in revenues from 2023, reaching NOK48.9 billion, with all business areas contributing to this growth.
- Kongsberg Maritime experienced the highest growth rate among business areas, with a 23% increase in revenues for the year.
- The company has a robust order backlog of NOK127.9 billion entering 2025, providing a solid foundation for future growth.
- Kongsberg Gruppen ASA (NSKFF) plans to increase its investments in R&D and product development to up to 15% in the medium term, supporting continuous innovation and growth.
- Kongsberg Defence and Aerospace’s EBIT margin slightly decreased in Q4 2024 compared to the previous year, reflecting a changing project mix.
- The company anticipates a downward trend in defence margins due to the evolving project mix and production ramp-up.
- Kongsberg Digital’s maritime business will be transferred to Kongsberg Maritime, which may impact the reporting structure and focus of Kongsberg Digital.
- The fishery market remains stable and has not shown significant growth, indicating limited expansion opportunities in this sector.
- The fish farming market is still considered premature, with no significant sales increase observed, suggesting potential challenges in market development.
A: We saw a NOK79 million improvement in the quarter on EBITDA, mainly due to improvements in Kongsberg Digital (KDI).
Q: The margin is increasing across all activities but slightly lower in Kongsberg Defence and Aerospace. Can you elaborate on this and share your expectations regarding the margin in Kongsberg Defence going forward?
A: We have been expecting a slightly different project mix in Kongsberg Defence and Aerospace. Despite this, we improved the margin in 2024 versus 2023 due to good project execution and scaling up the business.
Q: How should we think about the conversion of the 2024 Kongsberg Defence and Aerospace order intake into sales? Do you see possible growth year on year in KDA order intake in 2025?
A: We believe there will be strong demand for our defence portfolio. We are optimistic about ongoing programs and potential growth in 2025, despite a strong order intake in 2024.
Q: How is the weaker Norwegian kroner versus US dollars and euro impacting your competitive position and results?
A: The weak kroner improves our competitiveness slightly on the export side. However, our focus remains on technology and addressing customer needs, which ultimately makes the difference.
Q: Can you elaborate on the 2033 targets and the split between business areas? Should we expect the same split as today?
A: We did not split the targets by business areas due to the dynamic market position. The business area split has changed significantly over the last decade, and we expect it to continue shifting.
Q: What impacts margin differences between Q3 and Q4 in Kongsberg Maritime, and which vessels are most profitable?
A: Q3 benefits from lower costs due to holidays, affecting margins positively. LNG carriers have been strong contributors, and we expect diversified demand to continue.
Q: What are the key reasons for Kongsberg Discovery’s impressive growth?
A: Kongsberg Discovery has a solid technology backbone with specialized sensors and autonomous robotics, addressing major market drivers like security and sustainability.
Q: Do you see any signs of increased sales towards the fishery industry, either vessels or with regards to surveillance and new regulations?
A: The fishery area remains stable, with innovation being key. We see a strong market in research, where Kongsberg Discovery is a leader, contributing to fishery quotas and research.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.