BofA Sees Q3 Order Beat, 'Demanding' Margin Expectations for Kongsberg Gruppen

02:54 AM EDT, 10/19/2026 (MT Newswires) -- BofA Global Research anticipates a surge in third-quarter order intake for Kongsberg Gruppen (KOG.OL), while warning that market margin expectations for the three months appear "demanding." "We forecast revenue broadly in line with consensus but EBIT margins below expectations. The company has announced approximately NOK18bn of orders during Q3, most notably the NOK10bn NASAMS contract from Belgium. We forecast Q3 order intake of NOK19.5bn, more than double year on year and approximately 60% above consensus. Despite our below consensus margin forecasts, we reiterate our Buy rating given the long-term growth opportunities across NASAMS, JSM and Zone5," according to a third-quarter earnings preview note. The research firm expects third-quarter group EBIT margin to lag Bloomberg consensus estimates by 130 basis points and Visible Alpha forecasts by 170 basis points due to Zone 5 Technologies acquisition dilution, facility relocation, and a "less favorable" margin mix. However, analysts are positive on long-term tailwinds, highlighting Zone 5's participation in the US Air Force Family of Affordable Mass Missiles program. "Assuming Zone 5 Technologies ultimately secures one-third of programme volumes, this would equate to roughly 2,700 missiles per year. Applying the FY27 budget-implied procurement value of c.$355k per missile suggests a potential revenue opportunity approaching NOK10bn annually, highlighting how FAMM alone could provide a credible pathway towards management's NOK10bn revenue ambition, before considering NASAMS integration and ex-US opportunities," BofA wrote. Ahead of the technology and defense group's third-quarter earnings report on Oct. 29, the research firm has an unchanged price objective of 400 Norwegian kroner.