Kongsberg increases defense capacities - Europe spends more!

Kongsberg increases defense capacities - Europe spends more!

In a time when geopolitical tensions rise and the defense spending in Europe goes through the ceiling, there are companies that react to this trend. Kongsberg, a Norwegian engineering office, shows how it works: The company increases its production capacity for defense products, especially rockets, and records enormous increase in order. In the second quarter of 2025, Kongsberg was able to record orders worth 18.18 billion Norwegian crowns (approx. 1.80 billion USD), which represents a remarkable increase of 5% compared to the previous year, such as Marine Technologynews.com reports.

A significant part of this order volume, namely 54%, comes from the area of ​​defense and aviation. CEO Geir Håøy speaks of "record -high market activity" in the defense sector. This is not surprising, since many European countries in response to Russia's aggressive foreign policy and the uncertainties about the future military support of the United States significantly increase.

European military orders in the upswing

Kongsberg not only plans to increase production in the home country of Norway, but also builds capacities in Australia, which are financed by the state's government. Interestingly, the Australian facility is equipped and rented by Kongsberg in the long term. At the same time, the establishment of new production facilities in the United States, which are financed directly from the company's funds. The company is expected to invest between 3% and 5% of its sales to expand the defense production capacities, even in one year full of financial challenges defense-indology.eu.

The general tendency in Europe cannot be ignored: NATO countries invest around 72 billion euros in armor every year and thus create 190,000 jobs in the armaments industry, but also many indirect areas for suppliers. An increase in defense spending could even create 660,000 additional jobs. This is shown by the study by EY, which indicates the economic impulses by these investments (https://www.de_de/newsroom/2025/02/ey-studie-defense investment).

increasing demand and challenges

In response to geopolitical developments, an enormous increase in defense expenditure is expected for the coming years. Even in the event of an armistice in Ukraine, an expansion of the armaments sector will be expected. Kongsberg is well positioned to benefit from this trend - but not without challenges. Analysts have pointed out weaknesses in various areas of corporate numbers, which is reflected in a decline in stock prices.