Kongsberg Gruppen (OB:KOG) Q3 Results Spotlight Backlog Strength And Margin Risk

Kongsberg Gruppen stock closed at NOK352.70 on 29 October, just as traders reacted to a fresh Q3 2026 scorecard that paired a high 61.3x P/E with very strong reported execution. The headline was simple enough. Revenue reached NOK10.84b and net income excluding extra items came in at NOK1.48b for the quarter, feeding into a trailing net margin of 15.2%.

In the short term, that valuation multiple can look heavy. Over a multiyear horizon, the key question is whether current earnings growth and the NOK174.2b backlog can justify both the price tag and the discounted cash flow upside implied by recent modelling.

Love Kongsberg Gruppen's thick 15.2% net margin and hefty NOK174.2b backlog but uneasy about paying a 61.3x P/E for it? Compare that setup with other companies that pair strong fundamentals with sturdier balance sheets and valuations in our list of solid balance sheet and fundamentals stocks (206 results).

Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): NOK 10,842m vs. NOK 13,302m (headline order intake and backlog indicate strong demand despite the lower reported top line year on year)
• Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): NOK 1,483m vs. NOK 1,697m (net profit remained high with a reported trailing net margin of 15.2%)
• Basic EPS (Q3 2026 vs. Q3 2025): NOK 1.69 vs. NOK 1.93 (per share earnings stayed robust while the stock trades on a 61.3x P/E)
• Order Backlog and Profitability (Q3 2026): Backlog NOK 174.2b and trailing net margin 15.2% vs. 12% a year earlier (indicating multi-year revenue visibility and firmer profitability)

Kongsberg booked record orders and a backlog stretching past 2028. Ask Charlie what Kongsberg’s huge backlog says about future revenue.

Kongsberg Gruppen: Missile Build Out Meets Delivery Test

The bullish story centers on missile capacity turning backlog into high quality earnings. That depends on execution, not just order headlines.

"The main factor that has to go right is that Kongsberg Gruppen executes its high PP&E investment program and new missile factories on time and on budget so the company can deliver the larger order book at healthy margins."

Q3 offers some validation. Defence Systems booked strong NASAMS contracts and delivered a 20.6% EBIT margin, while group EBIT reached 16.4%, already above the ambition line. Missiles & Aerostructures grew sharply yet showed margin dilution as Zone 5 costs hit, a clear reminder that the factory rollout is progressing but not friction free.

The price and this Narrative do not agree. → Uncover what this Narrative says Kongsberg Gruppen is actually worth.

Kongsberg Gruppen: Margin Fears Meet Mixed Evidence

Bearish views center on whether Kongsberg Gruppen can turn record demand into reliable profitability and cash.

"Despite industry enthusiasm around high volume missile production and the acquisition of Zone 5 as an affordable mass missile platform, guidance for single digit profit margins at Zone 5 over the next 12 to 24 months and the sizeable cash outlay for this deal raise the risk that the shift toward volume missiles dilutes group EBIT margins and extends the payback period on invested capital."

The latest quarter cuts both ways. Group EBIT margin of 16.4% and Defence Systems at 20.6% push against the gloom. Missiles & Aerostructures at 11.6%, down from 16.5%, confirms early Zone 5 dilution. Strong operating cash flow and a higher cash balance ease near term funding worries, yet the margin mix shows the overhang is not resolved.

Hunt For Quiet Backlog Stories

Kongsberg Gruppen just reminded investors how much debate a single quarter can stir up around valuation and execution. The real opportunity is finding stocks that could be undervalued before the market corrects them.

• Company 1 - 15% below our estimate - targets hyperscale data center builds where customers secure wiring capacity ahead of new chips.
• Company 2 - 22% below our estimate - supplies elastomer and capsule components that stay locked once production equipment is qualified.
• Company 3 - 35% below our estimate - installs onshore wind turbines that then feed long term service and maintenance contracts.

Three companies from the same screener. Open all 194 potentially undervalued companies →

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