As well as Executive Vice President and Chief Financial Officer Mette Toft Bjørgen. Later today you will also have the opportunity to follow company presentations of Kongsberg Maritime and Kongsberg following the demerger, or the announced demerger. At 9:30 A.M. Central European Time, incoming CEO Lisa Edvardsen Haugan will present Kongsberg Maritime, and at 10:15 A.M. incoming CEO Eirik Lie will present Kongsberg going forward. But before that, let's dive into the Q4 figures. Geir, the floor is yours.
Thank you. Thank you, Jan Erik.
Good morning, everyone. Thank you for joining us here today. It's a real pleasure to welcome you all to this presentation for the Q4 and 2025 results. This is the last quarter we will present Kongsberg as we know it, and also the last time I will have the pleasure of presenting the quarterly highlights of the group. We find ourselves in extraordinary time, packed with both challenges and exciting opportunities. The current geopolitical and economic landscape is undergoing profound transformation, with shifting alliances and rebalancing of power shaping a new world order. As the global tension rise and competition intensifies between the major economic and military powers, the necessity for the adaptability and foresight has never been greater.
In this environment, where tariffs and trade are constantly on the agenda, the interplay between national and regional interest, technological advancement, and international cooperation is redefining the rules of engagement and presenting both new risk opportunities for growth and innovation for a company like Kongsberg. The new security situation in Europe, marked by the ongoing war in Ukraine, has brought significant challenges and increased uncertainty across our continent. This conflict has underscored the importance of resilience, preparedness, and technological innovation within defense and the maritime sector. As European nations reassess their security strategies and strengthen cooperation, our company remains committed to support Ukraine and our allies, ensuring that we are well positioned to respond and act. Over the past few years, Kongsberg has made considerable strategic decisions through acquisition, technological development, and capacity investment.
These decisions have given us new muscles, leading international positions, and better conditions to perform and navigate in a demanding and unpredictable landscape. Now we stand on the brink of another major and important strategic transformation of the company's history. After the extraordinary General Assembly meeting in January, it was decided with broad support that Kongsberg Maritime will be listed as a separate maritime technology company, and that Kongsberg Defence & Aerospace and Kongsberg Discovery will be consolidated into a technology and defense-focused company. My main priorities over the coming months are to ensure that the strategic changes and the leadership transition provide continuity, stability, and security for all our stakeholders. I would like to take this opportunity to thank everyone for your support and encouragement throughout the process, providing a solid foundation for the soon-to-be two independent listed companies.
In our quarterly report that was published this morning, you might have seen that Kongsberg Maritime is presented as discontinued business. In this presentation, however, we will present Kongsberg, including Kongsberg Maritime, so that the numbers are comparable to previous quarters. 2025 was yet another strong year with solid growth and profitability, and also a strong influx of new orders. Kongsberg Maritime delivered growth and strong order intake despite a slowdown in the number of vessels contracted at the shipyards. The business area really demonstrated innovativeness through the delivery of Reach Remote 1. This is a 24 m unmanned surface vessel designed by Kongsberg and filled with our technology. The remotely controlled vessel marks a real step change in the offshore operation, offering safer, more efficient, and lower emission solutions.
The technologies that are required for such operation are also, of course, applicable for other segments, and I can assure you that you will see more of this going forward. In Kongsberg Defence & Aerospace, demand remained very strong throughout the year. We saw solid growth, signed new major contracts, and the business area made a solid contribution to the record high order backlog for the group at the year's end. Our defense area continued to expand, and we are now underway with constructing new missile facilities both in Australia and also in the U.S.. This new capacity comes on top of the recent expansion in Norway. In Kongsberg Discovery, we continued to grow our ocean technology business. There was a strong demand for our sensors, positioning systems, and subsea solutions.
We have seen, and are continuing to see, increased demand for our technologies that both survey and explore underwater. I'm confident that combining our underwater technology portfolio even closer with our defense business in 2026, we could broaden the exposure even further. Overall, 2025 was a year of strong performance, strong demand, and important technological milestones. As we now move into 2026, both companies, Kongsberg Maritime as a separate company and the continued Kongsberg, enter the year with solid foundations, clear strategic direction, and also a strong momentum. Turning our attention to the quarter, Q4, it was another good quarter with solid progress and results. Mette will come back to the financial details shortly. When it comes to the order intake, we signed orders for NOK 31.8 billion in the quarter. The largest one was the NASAMS contract with Denmark, worth NOK 6 billion.
This contract will provide Denmark with the latest and most modern and advanced air defense capability in the world. With this procurement, Denmark becomes also the 14th NASAMS user. Kongsberg Maritime continued to deliver a solid order intake, especially deliveries for new builds. And despite the number of vessels contracted in the market, that was down compared to the previous year, we experienced a favorable mix for our offerings. Also in Q4, orders from offshore new build segments were a strong contributor to the overall order intake. In Kongsberg Discovery, we continued to see strong demand for HUGIN AUVs and also drone detection radars. In addition, technology deliveries to research vessels contribute well to the overall order intake. So all three business areas end 2025 with a significantly higher order backlog compared to 2024. And with that, I leave the floor to Mette to take us through the financial status.
Thank you, Geir. Good morning, everyone. It's a pleasure to once again report solid financial performance for Kongsberg. Before we dive into the fourth quarter and the 2025 figures, let me briefly touch on what figures we are presenting for you today. The extraordinary general meeting in January approved that Kongsberg Maritime will be listed as a separate maritime technology company. The demerger was announced in the fourth quarter, and the proposal triggers the requirement to present Kongsberg Maritime as operations held for distribution in our financial statements, both for Q4 and the full-year 2025. For today's presentation, however, we focus on the legacy company, meaning Kongsberg, including Kongsberg Maritime, to give a known comparison, as Geir said, of underlying performance and year-on-year development, as this reflects how the business has operated throughout the year.
Operations held for distribution will differ somewhat from the business area Kongsberg Maritime since the new listed Kongsberg Maritime includes additional activities as described in the demerger plan. With that, let's move on with the 2025 figures. 2025 has been another solid financial year for Kongsberg. Revenues reached NOK 58.6 billion in 2025, with underlying revenue growth at 17%. This excludes the gain from the divestment of the steering gear and rudder business, which added NOK 1.2 billion to both revenues and operating profit. All business areas delivered solid growth. Kongsberg Defence & Aerospace was the main driver with 32%. Kongsberg Discovery delivered 16%, and Kongsberg Maritime ended the year with 10% year-on-year growth. Looking ahead to 2026, with successful execution on the backlog, we expect the full-year top-line growth to be broadly in line with what we achieved in 2025.
There will be normal quarterly fluctuations, but overall we see a growth trajectory this year that is consistent with last year for both Kongsberg Maritime and Kongsberg. EBIT for the year came in at NOK 9.3 billion. Excluding gain from sale, EBIT was NOK 8.1 billion, corresponding to an operating margin at 14.1%, an improvement of 0.8 percentage points from 2024. Both Kongsberg Defence & Aerospace and Kongsberg Discovery improved margins, supported by solid project executions and cost control. Kongsberg Maritime recorded a margin decline of 0.8 percentage points. This was driven by portfolio changes, including the divestment of the steering gear and rudder business and the integration of Kongsberg Digital's maritime portfolio. Adjusted for these effects, the margin is broadly in line with 2024. Order intake remained high at the high level we saw in 2024 and increased the order backlog by a further 23%, reaching NOK 157.4 billion.
The strong order backlog gives us good visibility and higher revenue coverage in the next two years than what we have previously seen. Let's go into the fourth quarter. Revenues for the group came in at NOK 16.8 billion, up close to NOK 3 billion or 21% from Q4 last year. Kongsberg Maritime delivered revenues of NOK 7.6 billion, a year-on-year growth of 10%. The growth is led by the new sales division, supported by solid backlog coverage. The aftermarket came in somewhat stronger than expected, and we saw increased service activity in Q4, although the overall aftermarket share is down from 57% in 2024 to 53% of revenue in Q4. Kongsberg Defence & Aerospace delivered revenues of NOK 7.9 billion, up 44% from Q4 last year. A significant share of the growth in this quarter was driven by higher delivery volumes across missile, air defense, and counter-UAS.
Around NOK 600 million of the increase are effects from timing and accelerated deliveries originally planned for 2026. Kongsberg Discovery grew revenues by 16%, coming in at NOK 1.4 billion. The main drivers for the increased revenues were deliveries of drone detection radars as well as high activity related to strong AUV sales. The group delivered operating results of NOK 2.5 billion at a margin of 14.7%. This is a strong improvement versus Q4 2024, increasing EBIT by NOK 730 million and the margin by 2.2 percentage points.
Profitability improved due to a favorable project mix and scaling driven by Kongsberg Defence & Aerospace. Kongsberg Maritime delivered NOK 0.84 billion and a margin of 11%. This is an improvement from NOK 0.76 billion in the corresponding quarter last year. The margin was in line with last year, but adjusting for the portfolio changes, the margin improved by approximately 1 percentage point.
Kongsberg Defence & Aerospace came in at NOK 1.48 billion, with a margin of 18.7% compared to NOK 0.81 billion and 14.7% last year. The increase in the EBIT margin was driven by a favorable project mix and strong volumes in the quarter. Kongsberg Discovery reported NOK 0.25 billion and a margin of 17.5%. This is up from NOK 0.23 billion at an 18.4% margin in Q4 last year. The margin reduction compared with the fourth quarter last year is mainly due to the project mix and more in line with the expected deliveries going forward. Total contribution from associated companies was NOK 380 million in Q4 compared to NOK 276 million in Q4 last year. Our two largest associated companies are Kongsberg Satellite Services and Patria. Kongsberg Satellite Services delivered revenues of NOK 667 million in Q4, which is 16% above last year.
For the full-year, KSAT delivered NOK 2.4 billion in revenues, representing a year-on-year growth of 6%. The EBIT for the quarter is NOK 127 million and NOK 482 million for the full-year. We're pleased to see the improved profitability for KSAT. Patria reported a very strong Q4 with EUR 518 million in revenues and an EBIT margin at 15.2%, both the revenue growth at 49% and the solid EBIT benefited from ramp-up of vehicle production. The EBIT also includes strong contribution from Patria's subsidiaries. I would like to remind you that we report four months in the fourth quarter from Patria. For the full-year, Patria delivered revenues of EUR 1.1 billion, with operating results of EUR 116 million. Both KSAT and Patria reported significant increase in the order backlog this quarter, driven by large order intake related to the European defense market.
Patria signed in December two serial contracts with Germany on Patria 6x6 vehicles and the Nemo mortar systems, which represent the largest single deal in Patria's history, and the current order backlog is at EUR 3.5 billion. The backlog from our associated companies is currently not recognized in Kongsberg's reported backlog. The improved performance from associated companies contributed to solid net earnings at NOK 2.3 billion, an increase of 58% from the same quarter last year. 2025 has been a year of exceptional cash conversion for Kongsberg. Cash position at year-end was NOK 21 billion for the group, compared to NOK 14 billion when entering the year. This is driven by strong operating results and supported by the improved working capital in all business areas. In terms of outflows, capacity investments continue at a high level, and the dividend at NOK 3.9 billion was paid out last year.
Tax amounted to NOK 1.4 billion for the full-year 2025. On several defense contracts, we received prepayments to secure supplier deliveries and long lead items. Our capital allocation principles are key to operating responsibly and securing continuous profitable growth. Number one priority is a solid balance sheet, and we aim to remain investment grade. Secondly, we invest for organic growth and to deliver on our order backlog. At the Capital Markets Day in June 2024, we said we would invest up to 15% in R&D and property, plant and equipment investments. NOK 3.1 billion or 5.5% of revenues were spent on Kongsberg-funded R&D in 2025. The majority of these initiatives are in Kongsberg Maritime, which accounts for NOK 1.8 billion or 6.7% of revenue. In Kongsberg Defence & Aerospace, a larger share of the R&D is customer-financed.
NOK 2.4 billion or 4.3% of revenue were spent on property, plant, and equipment investments, the majority of which is related to capacity increases in Kongsberg Defence & Aerospace. We aim to deliver healthy shareholder remuneration. Kongsberg's dividend policy is to pay a stable or growing ordinary dividend. For 2025, the board will propose to return NOK 5 billion to shareholders. I will come back to the details on the next slide. Going forward, Kongsberg Maritime will aim for a relative dividend policy, where the payout ratio will be suggested at 40%-60% of net earnings after tax, and we believe this is more suitable for Kongsberg Maritime's nature of business. Now, we perform active portfolio management to develop our business and the ability to create value going forward. In 2025, the largest initiative is, of course, the ongoing demerger and listing of Kongsberg Maritime.
In addition to that, we have closed the following transactions: sale of steering gear and rudder, acquisition of Naxys Technologies, and the transfer of the digital marine business from Kongsberg Digital to Kongsberg Maritime. We have announced a joint venture with Thales Norway on the crypto and defense communication business, as well as the U.S. acquisitions of Sonatech and Zone 5 Technologies, amounting to approximately NOK 6 billion. As mentioned on the previous slide, the Board of Directors has decided to propose to return NOK 5 billion in dividends, representing 63% of net earnings. This corresponds to NOK 5.7 per share. NOK 3.5 per share will be in excess of the company's ordinary dividend policy. When considering our performance outlook and solid foundation, the board proposes to raise the floor on ordinary dividends with another 10% to NOK 2.2 per share.
The dividend is to be paid out on the 22nd of April 2026. With that, I will leave the floor to Geir for the last time for some final remarks.
Thank you, Mette. You should have a glass of water. Yes, I think we have already touched on our solid position and also some of our outlooks. Kongsberg Maritime will start its journey as a standalone company from a very solid foundation with an order backlog worth NOK 28 billion, on top of a healthy and innovative operation, delivering into a market where the company continues to confirm its position as an enabler for the ongoing transition. Kongsberg Defence & Aerospace and Kongsberg Discovery, that together will form Kongsberg going forward, have closed to NOK 130 billion order backlog.
We also continue to see strong demand for the advanced solutions from both the military and the commercial market. In June 2024, at our Capital Markets Day, we set out an ambitious plan to triple Kongsberg's revenues over the next 10 years. The results for 2025 show that we have started on the fast track and already have made solid steps to deliver on this ambition. We have built a strong foundation to continue this development as two separate companies. And as Jan Erik started with later today, the future CEO of Kongsberg Maritime, Lisa Haugan, and Eirik Lie, who will take the role as CEO in Kongsberg from mid-April, will give you a more detailed overview of the two businesses.
The purpose of these presentations is to give you a broader overview of the two companies' setup, the markets, as well as some of the prospects going forward. The two companies have already started to work on paving out their strategies going forward, and the result of this, including the future ambitions for the two companies, will be presented on the respective Capital Markets Day planned for June this year. With that, I will open up for some Q&A, and Mette will join me.
We have a question from Hans-Erik Jacobsen. Hans-Erik Jacobsen, Arctic. You just received a significant order in Poland for a C-UAS system. Can you explain a little bit about the potential for more orders? I guess it's not only Poland that wants protection.
Yeah, this is, of course, I would say, let's say, a start of the counter-UAS setup in Europe.
Poland is a very important customer for us, and this is a major, let's say, startup. I would believe that with all the attention that we see around both counter-drone UAS protection, that there will be other nations interested in following this project. This is a rather fast-track project, and Kongsberg Defence & Aerospace and Kongsberg Discovery have, I would say, a very good position in that race. So it's going to be. This will give us new opportunities, I'm quite sure about that.
We'll take a question from one of the viewers, from Martin Granviken, Kepler. It goes to the CFO. With a full-year EBITDA margin uplift of approximately 1.5% for KDA, what does the current backlog mix suggest for fiscal year 2026 when it comes to margins, an EBITDA outlook?
Yes. Well, we have, of course, delivered above expectations on the margin, and especially in Q4 due to accelerated deliveries on some of the missile projects and also air defense. Of course, we are still in a ramp-up phase, so we're still working on scaling the business. So our margins will be more in line with what we have seen over the cycle, over the quarters, for the next year as well.
Thank you. It's one more question from Mr. Granviken with regards to the expanded missile factory capacity. What are the timeline ramp-up plans for the new missile capacities in Australia and in the U.S.? And when does that start to translate into incremental deliveries?
For the Australian facility, we will start, the plan is that we will be up and running, I would say, end of 2027, and then obviously it will be a ramp-up period throughout 2028.
So hopefully, I think we will see that we are full-rate production within 2028. That is the intention. The U.S. is a little bit slower, but I believe also that we will see that we are ready to produce in the U.S. end of 2027, beginning of 2028, and then the follow-up ramp-up will be the same. So it's really a good plan to make sure that we are able to deliver on our backlogs.
Thank you. We have a question from Lukas Daul, Arctic Securities. With regards to the 2026 guidance you gave on revenues, can you confirm the divisional split of that?
Yes, I confirm that when we're looking at the legacy Kongsberg and the current divisional split, that we are looking at a growth in 2026 broadly in line with what has been delivered in 2025.
Thank you. And a question from Marius Lorentzen, Finansavisen.
What is the timeline for adding new and lower-cost missiles to eventually NASAMS or others?
I think I will leave that question to Eirik Lie, who will present the plans later this morning. But definitely, there are plans there. But Eirik will come on shortly, so he can probably elaborate on that.
Thank you. And with regards to the upcoming demerger, can you elaborate and repeat a little bit around the rationale behind spinning off Kongsberg Maritime?
Yeah, as we have said many times, Kongsberg has changed, I would say, the last five to 10 years. And definitely, the world around us has changed, and I think the business and the portfolio in Kongsberg has changed. Obviously, we are addressing different markets. There are, I would say, different requirements when it comes to how we set up and make decisions and do strategic prioritizations.
So the rationale here is actually to have a more, I would say, focused management, Board of Directors that make us more agile, that we can navigate faster in a changing world. It's very unpredictable out there. Things are moving fast, and we have to be really agile to be able to address that market. Something new about that?
No. Thank you. And while we wait to see if there are any final questions, I would also like to inform that after this presentation, it will be a break until 9:30 A.M. before we continue with the company presentations. So any final questions from the audience? If not, I'll leave the word to you again, guys.
Yes. So as I started with, this will be my last quarter presenting Kongsberg. It has been a pleasure, and thank you for joining us here today. And I look forward to seeing you later.
Thank you.