Norwegian arms manufacturer Kongsberg Gruppen is likely to benefit from a big increase in defence spending, according to analysis published by MoneyWeek. The Nato summit in Ankara in July 2026 reported that European allies and Canada had invested more than $139 billion in core defence requirements over the previous year, alongside $50 billion of new procurements and a commitment to expand manufacturing capacity. Allies also pledged $70 billion of military equipment, training and support to Ukraine for 2026, with at least that amount again for 2027.
At the 2025 financial year-end, Kongsberg's order backlog was NKr157 billion (£12.4 billion). The chief executive officer said that, in his ten years in the job, he had never seen such high demand.
Kongsberg's results for the three months to the end of June 2026 were the first without its maritime division, which was spun off in February 2026 as a separate listed company. Revenues rose 31% from the same period in 2025 to NKr10.4 billion. Earnings before interest and tax were up 48.9% to NKr1.67 billion, and the Ebit margin rose to 16.1%. Order intake for the second quarter rose by 164% of second-quarter revenue, taking the order backlog to NKr157 billion.
The company has pursued acquisitions including Zone 5 Technologies, a Californian maker of affordable, mass-producible munitions, completed in June 2026, and Sonatech of California, an underwater acoustics specialist, acquired in September. In July, Kongsberg won a $100 million contract from the US Air Force for stealth air-to-surface Joint Strike Missiles, with deliveries scheduled up to 2030.
Kongsberg has a market capitalisation of NKr275 billion at a recent share price of NKr312.7, with a one-year price target of NKr396.4 and a forward dividend yield of 0.7%. Analysts predict 2027 revenues of NKr64.2 billion, a 49% increase over 2026, with earnings per share projected to rise to NKr11.2, a 52% increase.