Kongsberg Gruppen

M&A Activity • Nov 12, 2024

KONGSBERG awarded contract to deliver Naval Strike Missile to US Navy and Marine Corps valued up to NOK 12 billion

KONGSBERG awarded contract to deliver Naval Strike Missile to US Navy and Marine Corps valued up to NOK 12 billion

Kongsberg Defence & Aerospace (KONGSBERG) has signed a multi-year procurement contract with the US Navy for the delivery of Naval Strike Missile (NSM) missiles to the Navy and Fleet Marine Force over a five-year period. The fixed price contract awarded today is valued at NOK 10 billion. This contract includes options which, if exercised, would bring the cumulative value of this contract to about NOK 12 billion.

"This contract is the largest missile contract in KONGSBERG’s history and an important milestone for us. We are pleased the United States has selected KONGSBERG as an industry partner and look forward to continued cooperation to support US defense capabilities and create value for important stakeholders in Norway and the US,” said Geir Håøy, President and CEO of KONGSBERG.

NSM is the centerpiece of the Navy’s Over-the-Horizon Weapons System (OTH-WS) Program, and is being installed on Littoral Combat Ships and CONSTELLATION-class Frigates. KONGSBERG is also delivering NSM to the US Marine Corps as a key component of its NMESIS (Navy Marine Expeditionary Ship Interdiction System) Program.

“This contract is an example of the strong demand we see for our strike missiles across NATO and allied nations, which is why we this year have opened a new missile factory in Norway and announced two facilities in Australia and the US. The multi-year procurement contract vehicle provides KONGSBERG and all our sub-suppliers stability into the entire supply chain and workforce,” said Eirik Lie, President of Kongsberg Defence & Aerospace.

KONGSBERG recently announced the building of a new missile factory in James City County, Virgina, in response to increasing demand for JSM and NSM.

About Naval Strike Missile

The NSM is an anti-ship missile with superior operational performance and high survivability against all enemy defense systems. The missile was developed by KONGSBERG and first deployed in 2012 by the Norwegian Navy.

NSM is the main weapon for the Norwegian Navy’s frigates and coastal corvettes, and has been selected by the US Navy, US Marine Corps, Poland, Romania, Canada, Germany, Australia, Malaysia, Spain, UK, The Netherlands, Belgium, and Latvia.

This release contains inside information related to Kongsberg Gruppen ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This release is issued by Renate Tegdal, Investor Relations, Kongsberg Gruppen ASA. Date and time of publication: 23:04 CET, 12 November 2024

KONGSBERG (OSE ticker: KOG) is an international, knowledge-based group that supplies high-technology systems and solutions to customers in a wide range of markets such as defence, security, maritime, energy, aerospace, climate mapping and subsea technology. KONGSBERG has more than 13,500 employees in 39 countries and has a total turnover of NOK 40.6 billion in 2023.

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