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Key takeaways

Kongsberg Gruppen is seeking strategic acquisitions to meet the sharply rising demand for missile systems.The Norwegian defence company is focusing on businesses specialising in counter-drone technologies and remotely operated weapon systems.Kongsberg’s market valuation has increased fivefold now that European defence spending has become a long-term trend.

Due to an exceptional surge in orders for its missile systems, Kongsberg Gruppen is exploring the possibility of strategic mergers and acquisitions to drive its expansion.

In a conversation with Bloomberg Television, CEO Eirik Lie underlined the intense demand for the company’s Joint Strike and Naval Strike weapons systems, noting that production capacity has been expanded to keep pace with demand.

Focus on new technologies

Lie indicated that the company is particularly interested in acquiring firms that specialise in remotely operated weapon stations and counter-drone technology. This strategic course reflects a broader conviction among European defence leaders that the current increase in military spending represents a long-term shift towards sustained investment, rather than a fleeting response to ongoing conflicts.

Sharp rise in market valuation

The company’s financial position has seen a spectacular increase. Its market capitalisation on the Oslo stock exchange has grown fivefold since the start of the Russian conflict in Ukraine in 2022. Thanks to this strong rise, Kongsberg has become one of the most successful players in the European defence industry.

Future challenges

Looking ahead to future growth, Lie cited undersea combat operations and space operations as two primary areas of focus for the organisation. With regard to the broader geopolitical landscape, he noted that although European defence budgets have shown an upward trend over the past year, they still lag behind the commitments made to NATO.

Despite this gap, he remains optimistic about the progress being made towards achieving those financial targets. (fc)

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