Kongsberg Q3 orders jump on strong missile, air defence demand

Oct 29 (Reuters) - Norwegian defence and technology company Kongsberg Gruppen reported order intake more than doubling in the third quarter on Thursday, driven by strong demand for missiles, air defence systems and weapon stations.

Orders rose to 23.3 billion Norwegian crowns ($2.52 billion), the company said.

The surge reflects rising European defence spending as NATO allies rebuild weapons stockpiles and bolster air-defence capabilities in response to Russia's war in Ukraine, pushing Kongsberg's order backlog to a record 174 billion crowns.

Kongsberg's shares rose around 7% in early trading in Oslo after the results.

"Strong demand and an order backlog of NOK 174 billion position Kongsberg well for further growth," CEO Eirik Lie said in a statement.

Investments in production capacity supported the company's growth outlook, Kongsberg said.

The company said in June it aimed to triple revenue by 2029 and more than quadruple it by 2033, citing increased European defence spending.

Asked about inflation, supply-chain disruptions and higher costs, Lie said Kongsberg had largely locked in costs and pricing for projects due to be executed in 2027 through its order backlog and supplier agreements.

"Most of the contracts we are going to execute in 2027 are already in our order backlog. They are secured. They are for fixed prices," Lie told Reuters.

Lie said Kongsberg remained largely insulated from U.S. tariffs because its defence exports to the United States were exempt, while a growing manufacturing presence in the country further reduced its exposure.

($1 = 9.2465 Norwegian crowns)

(Reporting by Marta Frąckowiak in Gdańsk; editing by Matt Scuffham)