Norway · Delayed Price · Currency is NOK Kongsberg Automotive ASA Earnings Call Transcripts
Fiscal Year 2025
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Q4 delivered strong EBIT and cash flow improvements despite lower year-over-year revenue, driven by cost reductions and one-time accrual reversals. Market conditions are stabilizing, and a positive net income was achieved, with a reaffirmed long-term EBIT margin target of 6.5%.
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EBIT and cash flow improved significantly year-over-year despite a 10% revenue decline, driven by cost reductions and effective tariff mitigation. Warranty liabilities and market uncertainties remain key risks, but acquisitions and strategic changes position the company for future growth.
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Q2 saw an 8% revenue decline year-over-year, with EBIT impacted by increased warranty accruals and tariffs, but free cash flow improved. Cost reduction programs and strategic acquisitions position the company for long-term growth, despite a challenging short-term market outlook.
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Q1 2025 revenue fell 10.9% year-over-year to EUR 190 million, with EBIT and net income also down due to weak demand and absence of one-time gains. Cost-saving programs are on track, and guidance for stable revenues and improving margins in 2025 is maintained, though tariff and market uncertainties persist.
Fiscal Year 2024
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EBIT improved to EUR 18.7 million in 2024 despite a EUR 96 million revenue decline, driven by cost reductions and strong business wins. Free cash flow improved but remained negative, with a positive outlook for EBIT margin in 2025 amid ongoing market uncertainty.
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Record business wins and a strong order book support a strategy focused on commercial vehicles, higher-margin products, and efficiency. Cost reductions, portfolio transformation, and innovation in electrification and automation drive long-term growth. Over 80% of 2028 revenues are secured, with efforts to enhance financial stability and investor communication.
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Q3 revenues fell 16.9% year-over-year amid weak automotive demand, but cost reductions and operational efficiencies improved EBIT margin to 2.9% YTD. Record new business wins and further cost-saving initiatives position the company for long-term growth, with 2028 ambitions reaffirmed.
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Q2 2024 delivered improved EBIT and operational KPIs despite lower revenues, driven by cost reductions and strong new business wins. Guidance for 2024 was revised down due to weaker volumes, but record order intake and a solid liquidity position support long-term growth ambitions.