Kongsberg Gruppen is exploring acquisitions to bolster expansion at a time when orders for its weapons are climbing sharply, Chief Executive Officer Eirik Lie told Bloomberg Television in a recent interview. The company has increased production capacity for both naval strike missiles and joint strike missiles to respond to what Lie described as strong demand.
"We have a really steep demand for our missiles," Lie said, highlighting the company's stepped-up manufacturing efforts. He also indicated that potential transaction targets would focus on areas aligned with Kongsberg's existing product set, naming anti-drone systems and remote weapon stations as examples.
The CEO noted that acquisitions remain a possibility rather than a certainty. He said the company may pursue purchases of firms operating in core product areas such as anti-drone systems and remote weapon stations, indicating a selective approach to M&A as a complement to organic growth.
Lie pointed to other technology domains under consideration, identifying space and underwater warfare as additional areas of interest. "Two frontiers that are definitely also on our agenda," he said, without providing further detail on specific programs or timelines.
The recent remarks reflect a broader sense of optimism within parts of the European defense industry that increased military budgets will support investment and expansion over coming years. Kongsberg's profile in the market has risen notably; its market value on Oslo's exchange has increased five-fold since early 2022, after Russia's invasion of Ukraine, making it one of the stronger performers in Europe's defense sector during that interval.
On the subject of defense funding, Lie observed that European spending has grown over the past year but still falls short of the levels required to meet the commitments made by NATO leaders. "We see a positive movement forward to achieve some of the targets," he said, underscoring that while progress exists, a gap remains between current outlays and pledged targets.
As Kongsberg balances higher production rates and the prospect of strategic deals, observers will be watching whether the company converts interest in bolt-on technology acquisitions into completed transactions and how defense budget trajectories evolve across Europe.