Norwegian defense firm Kongsberg reports lower-than-expected Q2 order intake despite robust defense demand in Europe.
Kongsberg Gruppen (NSKFF) (KBGGY) shares declined after its second-quarter order intake missed market forecasts, despite continued growth driven by rising European military spending. The company cited timing issues, including an unrecognized $400 million NASAMS contract for Kuwait, as a key factor in the shortfall.
The defense contractor has seen strong demand for air-defense and missile systems, supported by a solid backlog. However, volatility in large contract bookings contributed to the weaker-than-anticipated Q2 performance. Analysts had expected higher order volumes amid heightened defense budgets across Europe.
The stock’s decline reflects investor disappointment over the order miss, though the company maintains a positive long-term outlook due to sustained defense sector growth.