Half Year 2026 Fjord Defence Group ASA Earnings Call

August 27, 2026

Speaker #1: Saab and BAE Systems for more than 30 years. Profitability have accelerated with the growth from revenue of 350 million in 2022 to 620 million in 2025, with an EBIT margin growing from 7 to 16%.

Jon Asbjørn Bø: Fjord Defence Group ASA. It is a pleasure to hold this presentation. Q2 is according with the management expectation and in line with normally quarterly variation. Second quarter pro forma revenue from the defense segment was NOK 245 million, with an EBITDA of NOK 42.4 million. The order book we have now reached approximately NOK 1.8 billion, including planned and released customer volume. It is a strong order book that improves visibility and confidence for the next following quarters. As you may have seen, we closed the latest acquisition of PartnerTech yesterday, and we did close also Frydenbø Milpro, now renamed to Fjord Defence Marine, on 5 June this year. As visibility has increased during the quarter, we remain confident in our previous communicated guiding for 2026, and therefore keep our guiding unchanged. We will provide guiding for 2027 when we do the Q3 presentation.

Speaker #1: Defence Group ASA, it's a pleasure to hold this presentation. Q2 is according with management expectations, and in line with normal quarterly variation. Second quarter pro forma revenue from the defence segment was 245 million, with an EBITDA of 42.4 million.

Speaker #1: Based on the general growth in the defense in Europe and clear requests from our largest customers for each of our 4 companies, we currently are investing a lot to build up the capacity for the expected growth.

Speaker #1: The order book we have now has reached approximately NOK 1.8 billion, including planned and released customer volume. This is a strong order book that improves visibility and confidence for the following quarters.

Speaker #1: We will continue doing that also in the second half of this year, and in a disciplined manner. Like we have done in the first half year.

Speaker #1: Fjord Defence have used the first year now to buy 4 quality companies to create the foundation for further profitable growth. Going forward, new acquisitions may be funded through retained earnings, increased debt capacity, and consideration shares.

Speaker #1: As you may have seen, we closed the latest acquisition of PartnerTech yesterday, and we also closed Frynbe Milpro—now renamed to Fjord Defence Marine—on the 5th of June this year.

Speaker #1: As visibility has increased during the quarter, we remain confident in our previously communicated guidance for 2026, and therefore keep our guidance unchanged. We will provide guidance for 2027 when we do the third quarter presentation.

Speaker #1: We are less dependent on share issue to get the money. The buying phase we have been through now is not going to stop, but as far as we have come now, creates the foundation and we are to unlock future operational improvement in the building phase of buy and build.

Speaker #1: Since we have got a new company, we presented what's now called Fjord Defence Marine in the Q1 presentation. It's a short little presentation of Partner Tech. It's a leading Swedish manufacturer of strategic metal components for global OEMs, with a manufacturing route all the way back to 1917.

Jon Asbjørn Bø: Since we have got a new company, we presented what is now called Fjord Defence Marine in Q1 presentation. It is a short little presentation of PartnerTech. It is a leading Swedish manufacturer of strategic metal components for global OEMs with manufacturing roots all the way back to 1917. PartnerTech has around 250 employees and is led by the Group CEO, Magnus Blomgren. It is a niche supplier of high-precision components for weapon systems and large caliber ammunition. Strategic supplier to both Saab and BAE Systems for more than 30 years. Profitability has accelerated with the growth from revenue of NOK 350 million in 2022 to NOK 620 million in 2025, with an EBIT margin growing from 7% to 16%.

Speaker #1: Based on expectated growth in all 4 companies, we have a strong focus on the buy and build strategy and we have a strong focus on the build side for these 4 companies.

Speaker #1: Developing internal capacity is highly attractive to shareholders and can over time evaluate the EBITDA to a higher level. And that is will Øyvind come back to later, when he does the financial numbers.

Speaker #1: Partner Tech has around 250 employees and is led by Group CEO Magnus Blomgren. It is a NIS supplier of high-precision components for weapon systems and large-calibre ammunition, and has been a strategic supplier to both Saab and BAE Systems for more than 30 years.

Speaker #1: Our portfolio companies have all a strong position in their respective defense niches, and given high market growth, we also retain our ambition to reach 400 to 500 million EBITDA in 2029, based on the expected organic growth.

Speaker #1: Profitability has accelerated with revenue growing from $350 million in 2022 to $620 million in 2025, with the EBITDA margin increasing from 7% to 16%.

Speaker #1: New build, new buy will of course increase the growth as well. As mentioned, previously we have a strong order book and that remains unchanged our target of 1 billion NOK in proforma revenue and about 190 to 230 million NOK in proforma EBITDA for the defense sector in the company.

Speaker #1: Based on the general growth in defense in Europe and clear requests from our largest customers for each of our four companies, we are currently investing a lot to build up the capacity for the expected growth.

Jon Asbjørn Bø: Based on the general growth in the defense in Europe and clear request from our largest customer for each of our four companies, we currently are investing a lot to build up the capacity for the expected growth. We will continue doing that also in the H2 of this year and in a disciplined manner like we have done in the H1. Fjord Defence has used the first year now to buy four quality companies to create a foundation for further profitable growth. Going forward, new acquisitions may be funded through retained earnings, increased debt capacity, and consideration shares. We are less dependent on share issue to get the money.

Speaker #1: Supported by the order backlog and strong pipeline, we are expecting an accelerated growth in 2027 and beyond. Then I leave over to Øyvind to take care of the numbers.

Speaker #1: We will continue doing that also in the second half of this year, and in a disciplined manner like we have done in the first half of the year.

Speaker #1: Fjord Defence has used the first year to buy four quality companies to create the foundation for further profitable growth. Going forward, new acquisitions may be funded through retained earnings, increased debt capacity, and consideration shares.

Speaker #2: Thank you, Jonas Bjørn. So the numbers we are considering here are solely the defense segment, and that is done on a proforma basis as if we own the companies from the 1st of January 2024.

Speaker #2: As can be seen here, there has been modest growth in Q2 from Q2 25 to Q2 26, and that is as expected with the relatively flat development in 2026.

Speaker #1: We are less dependent on share issues to get the money. The buying phase we have been through now is not going to stop, but as far as we have come now creates a foundation, and we are to unlock future operational improvements in the building phase of buy and build.

Jon Asbjørn Bø: The buying phase we have been through now is not going to stop, but as far as we have come now, creates the foundation, and we are to unlock future operational improvement in the building phase of buy and build. Based on expected growth in all four companies, we have a strong focus on the buy and build strategy, and we have a strong focus on the build side for these four companies. Developing internal capacity is highly attractive to shareholders and can, over time, evaluate the EBITDA to a higher level. Øyvind will even come back to later when he does the financial numbers. Our portfolio companies have all a strong position in their respective defense niches. Given high market growth, we also retain our ambition to reach NOK 400 to 500 million EBITDA in 2029 based on the expected organic growth.

Speaker #2: But as we are awaiting an accelerated growth into 2027, we have incurred more costs that can be seen in the personnel and other operating costs is going up, and thus depressing the result for the EBITDA for Q2 26 compared to 25.

Speaker #1: Based on expected growth in all four companies, we have a strong focus on the buy-and-build strategy, and we have a strong focus on the build side for these four companies.

Speaker #2: But this is as a preparation for accelerated growth, as Jonas Bjørn also mentioned. The rightmost column here shows the last 12 months Q2 numbers for the proforma including partner tech, and with the revenue of 942 and an EBITDA of 188.

Speaker #1: Developing internal capacity is highly attractive to shareholders, and can, over time, elevate the EBITDA to a higher level. And that is what Irwin will come back to later, when he does the financial numbers.

Speaker #1: Our portfolio companies all have a strong position in their respective defence niches, and given high market growth, we also retain our ambition to reach €400–500 million in EBITDA in 2029, based on the expected organic growth.

Speaker #2: And as we can see here, this is quite close to the full year forecast that was alluded to previously by Jonas Bjørn, and we maintain that.

Speaker #2: I would also like to add that proforma revenue in the first half of the year is about 460 million, and you saw previously the year to go order backlog of 530.

Speaker #1: New build, new buy, will of course increase the growth as well. As mentioned previously, we have a strong order book, and that allows us to maintain our target of NOK 1 billion in pro forma revenue and about NOK 190 to 230 million in pro forma EBITDA for the defence sector in the company.

Jon Asbjørn Bø: New buy will, of course, increase the growth as well. As mentioned previously, we have a strong order book, and that reminds us to not change our target of NOK 1 billion in pro forma revenue and about NOK 190 to 230 million in pro forma EBITDA for the defense sector in the company. Supported by the order backlog and strong pipeline, we are expecting an accelerated growth in 2027 and beyond. I leave over to Øyvind to take care of the numbers.

Speaker #2: If you add them together, you get very close to the full year forecast, and we consider it with a minor uncovered revenue as a low risk estimate, and forecast for the year.

Speaker #2: Again, reiterating and illustrating the growth we have been doing as we say, we have been through a very intensive buy period, increasing our turnover from 85 million a year ago to almost or more than 10 times that amount, including partner tech with 942 and 188 in EBITDA as we have shown.

Speaker #1: Supported by the order backlog and strong pipeline, we are expecting accelerated growth in 2027 and beyond. Now, I will hand it over to Irwin to go through the numbers.

Speaker #2: Thank you, Jonas Bjørn. So, the numbers we are considering here are solely for the Defence segment, and that is done on a pro forma basis, as if we owned the companies from 1st January 2024.

Øyvind Mølmann: Thank you, Jon Asbjørn. The numbers we are considering here are solely the defense segment, and that is done on a pro forma basis as if we own the companies from 1 January 2024. As can be seen here, there has been modest growth from Q2 2025 to Q2 2026, and that is as expected with a relatively flat development into 2026. As we are awaiting accelerated growth into 2027, we have incurred more costs that can be seen in the personnel and other operating costs is going up and thus depressing the result for the EBITDA for Q2 2026 compared to 2025. This is as a preparation for accelerated growth, as Jon Asbjørn also mentioned. The rightmost column here shows the last 12 months Q2 numbers for the pro forma, including PartnerTech and with a revenue of 942 and an EBITDA of 188.

Speaker #2: This growth is we are very satisfied with it. It gives us then the platform to build on. We are not stopping acquisitions, but now we have the platform for buying.

Speaker #2: As can be seen here, there has been modest growth in Q2 from Q2 2025 to Q2 2026, and that is as expected with the relatively flat development in 2026.

Speaker #2: So our operational focus will be to develop the left-hand side of this slide with revenues and profits as good as possible. That's the operational part of it.

Speaker #2: But as we are awaiting accelerated growth into 2027, we have incurred more costs that can be seen in the personnel and other operating costs going up, and thus depressing the result for the EBITDA for Q2 2026 compared to 2025.

Speaker #2: While on the right-hand side of the slide, it's more the financial side of it. We are in addition to or to enhance the development for the shareholders, we focus on the value per share, which is depicted here as cash earnings per share, with calculated that as proforma EBITDA less 7% interest charge on net interest bearing debt post each of the transactions.

Speaker #2: But this is as a preparation for accelerated growth, as Jonas Bjørn also mentioned. The rightmost column here shows the last 12 months' Q2 numbers for the pro forma including partner tech, with revenue of 942 and EBITDA of 188.

Speaker #2: And then you can see that this has increased from 0.49 NOK per share to 1.14, which is a 2.3 times uplift. And we will continue to focus on shareholder value by using measures per share, and our target is that this value should increase more than the results in the business over time.

Speaker #2: And as we can see here, this is quite close to the full-year forecast that was alluded to previously by Jonas Bjørn, and we maintain that.

Øyvind Mølmann: As we can see here, this is quite close to the full year forecast that was alluded to previously by Jon Asbjørn, and we maintain that. I would also like to add that pro forma revenue in the H1 of the year is about 460 million and you saw previously the year to go order backlog of 530. If you add them together, you get very close to the full year forecast. We consider it with minor uncovered revenue as a low risk estimate and forecast for the year. Again, reiterating and illustrating the growth we have been doing as we say we have been through a very intensive buy period, increasing our turnover from 85 million a year ago to more than 10 times that amount, including PartnerTech with 942 and 188 in EBITDA.

Speaker #2: I would also like to add that pro forma revenue in the first half of the year is about $460 million, and you saw previously the year-to-go order backlog of $530 million.

Speaker #2: There may be variations from quarter to quarter. We repeat that, but we take a long-term view on this, and then this is going to increase more than the results in the company.

Speaker #2: That's the aim. Finally, a few words on the balance sheet. As you can see, it has increased from a level of 700 million to 1.7.

Speaker #2: If you add them together, you get very close to the full-year forecast, and we consider it—with a minor uncovered revenue—as a low-risk estimate and forecast for the year.

Speaker #2: That is reflecting the acquisition of ScanFiber and the acquisition of Fjord Defence Marine, which is included here. And also if you look at the bank and cash in hand at end of the first half, that is 480 million, after a successful private placement of 412 million second half of June.

Speaker #2: Again, reiterating and illustrating the growth we have been doing—as we say, we have been through a very intensive buy period, increasing our turnover from 85 million a year ago to almost, or more than, 10 times that amount, including partner tech, with 942 and 188 in EBITDA as we have shown.

Speaker #2: And that amount is then has been pending the transaction closing of partner tech, which take took place yesterday. Also after this transaction, we have a very solid balance sheet with 77% equity ratio, the liquidity will be still good, and we have a moderate net interest bearing debt to the EBITDA for the year estimated at about 2 times that.

Øyvind Mølmann: As we have shown this growth, we are very satisfied with it. It gives us then the platform to build on. We are not stopping acquisitions, but now we have the platform for buying. Our operational focus will be to develop the left-hand side of this slide with revenues and profits as good as possible. That is the operational part of it. While on the right-hand side of the slide, it is more the financial side of it. To enhance the development for the shareholders, we focus on the value per share, which is depicted here as cash earnings per share. We have calculated that as pro forma EBITDA less 7% interest charge on net interest-bearing debt post each of the transactions. You can see that this has increased from NOK 0.49 per share to NOK 1.14, which is a 2.3 times uplift.

Speaker #2: We are very satisfied with this growth. It gives us the platform to build on. We are not stopping acquisitions, but now we have the platform for buying.

Speaker #2: So that's within the limit of 2.5. That was pointed at previously. So I would conclude with to say that we have financial robustness and flexibility.

Speaker #2: So our operational focus will be to develop the left-hand side of this slide, with revenues and profits as good as possible. That's the operational part of it.

Speaker #2: We have the capacity to continue to build defense fuel defense group further. So thanks for that, Jonas Bjørn.

Speaker #2: While on the right-hand side of the slide, it's more the financial side of it. In addition to, or to enhance, the development for the shareholders, we focus on the value per share, which is depicted here as cash earnings per share. We have calculated that as pro forma EBITDA less a 7% interest charge on net interest-bearing debt, post each of the transactions.

Speaker #1: Yes. So if we are looking at the outlook, as we see it now, unchanged 2026 target of 1 billion in revenue and between 190 to 230 million in proforma EBITDA.

Speaker #1: Supported by this order backlog and strong pipeline, we expected we expect growth in 2027 and beyond. As said, we have a strong order book.

Speaker #2: And then you can see that this has increased from NOK 0.49 per share to NOK 1.14, which is a 2.3 times uplift. We will continue to focus on shareholder value by using measures per share, and our target is that this value should increase more than the results in the business over time.

Øyvind Mølmann: We will continue to focus on shareholder value by using measures per share. Our target is that this value should increase more than the results in the business over time. There may be variations from quarter to quarter, we repeat that, but we take a long-term view on this, and this is going to increase more than the results in the company. That's the aim. Finally, a few words on the balance sheet. As you can see, it has increased from a level of NOK 700 million to NOK 1.7 billion. That is reflecting the acquisition of Scanfiber and the acquisition of Fjord Defence Marine, which is included here. Also, if you look at the bank and cash in hand at the end of H1, that is NOK 480 million after a successful private placement of NOK 412 million H2 of June.

Speaker #1: We have a at the moment as both the I told before and Øyvind on preparing the four companies now that we have in our portfolio.

Speaker #1: For the expected growth based on general growth and also from guidelines from our key customers in the different companies. So we have that. When it come to the financial position, we have done a lot of private placements over the last year.

Speaker #2: There may be variations from quarter to quarter—we repeat that—but we take a long-term view on this, and this is going to increase more than the results in the company.

Speaker #2: That's the aim. Finally, a few words on the balance sheet. As you can see, it has increased from a level of 700 million to 1.7 billion.

Speaker #1: We know have calculated that we have an internal capacity for new acquisition of about 700 million through retained earnings debt and consideration shares. We have done the calculation weighted calculation of how much we have given in in consideration shares over the last year with all the four acquisitions.

Speaker #2: That is reflecting the acquisition of ScanFiber and the acquisition of Fjord here. And also, if you look at the bank and cash in hand at the end of the first half, that is 480 million, after a successful private placement of 412 million in the second half of June.

Speaker #2: And that amount has been pending the transaction closing of Partner Tech, which took place yesterday. Also, after this transaction, we have a very solid balance sheet with a 77% equity ratio, the liquidity will still be good, and we have a moderate net interest-bearing debt to EBITDA for the year, estimated at about two times that.

Øyvind Mølmann: That amount has been pending the transaction closing of PartnerTech, which took place yesterday. Also after this transaction, we have a very solid balance sheet with the 77% equity ratio, the liquidity will be still good, and we have a moderate net interest-bearing debt to the EBITDA for the year, estimated at about 2x that. So that's within the limit of 2.5x that was pointed at previously. I would conclude to say that we have financial robustness and flexibility. We have the capacity to continue to build Fjord Defence Group further. Thanks for that, Jon Asbjørn.

Speaker #1: And it shows that we have been normally we end up with about 40% given in consideration shares. So we will be focused on buying as well as building and we know there is a lot of interesting companies coming up for sale over the next year.

Speaker #1: So we will be clearly active on that, but we want to also underline that building the companies now to prepare for the growth that everybody expect over the next 5 years is an important thing and we have to do it as we told before we have to do it this year so we're ready to take on the growth.

Speaker #2: So that's within the limit of 2.5 that was pointed out previously. So I would conclude by saying that we have financial robustness and flexibility.

Speaker #2: We have the capacity to continue to build the Defense Fuel Defense Group further. So, thanks for that, Jonas Bjørn.

Speaker #1: And then again guiding for 2027 will be a part of the Q3 report. So we are moving strong. We have growing the company and last year that was my first quarterly presentation in Q2.

Speaker #1: Yes. So, if we are looking at the outlook as we see it now, the 2026 target remains unchanged at $1 billion in revenue and between $190 million to $230 million in pro forma EBITDA.

Jon Asbjørn Bø: Yes. If you are looking at the outlook as we see it now, unchanged 2026 target of NOK 1 billion in revenue and between NOK 190 million to NOK 230 million in pro forma EBITDA. Supported by this order backlog and strong pipeline, we expect growth in 2027 and beyond. As said, we have a strong order book. We have, at the moment, as both I told before and Øyvind, on preparing the four companies now that we have in our portfolio for the expected growth based on general growth and also from guidelines from our key customers in the different companies. So we have that. When it comes to the financial position, we have done a lot of private placements over the last year. We now have calculated that we have an internal capacity for new acquisition of about NOK 700 million through retained earnings, debt, and consideration shares.

Speaker #1: We announced 85 million in expected proforma revenue. No, we are expecting 1 billion. So we have done quite a good start and we will continue to grow the earnings per share for the shareholders.

Speaker #1: Supported by this order backlog and strong pipeline, we expect growth in 2027 and beyond. As said, we have a strong order book.

Speaker #1: We have, at the moment, as both I told before and Irvin mentioned, been preparing the four companies that we now have in our portfolio for the expected growth—based on general growth and also from guidelines from our key customers in the different companies.

Speaker #1: So we have that. When it comes to the financial position, we have done a lot of private placements over the last year. We now have calculated that we have an internal capacity for new acquisitions of about 700 million through retained earnings, debt, and consideration shares.

Speaker #1: We have done the calculation weighted calculation of how much we have given in consideration shares over the last year with all the four acquisitions, and it shows that we have been normally we end up with about 40% given in consideration shares.

Jon Asbjørn Bø: We have done the weighted calculation of how much we have given in consideration shares over the last year with all the four acquisitions, and it shows that normally we end up with about 40% given in consideration shares. So we will be focused on buying as well as building, and we know there is a lot of interesting companies coming up for sale over the next year. So we will be clearly active on that. But we want to also underline that building the companies now to prepare for the growth that everybody expects over the next five years is an important thing, and we have to do it, as we told before, we have to do it this year, so we're ready to take on the growth. Then, again, guiding for 2027 will be a part of the Q3 report. So we are moving strong.

Speaker #1: So, we will be focused on buying as well as building, and we know there are a lot of interesting companies coming up for sale over the next year. So, we will clearly be active on that, but we also want to underline that building the companies now to prepare for the growth that everybody expects over the next five years is an important thing. We have to do it—as we said before, we have to do it this year—so we're ready to take on the growth.

Speaker #1: And then again, guidance for 2027 will be a part of the Q3 report. So we are moving strong. We have been growing the company and last year, that was my first quarterly presentation—in Q2—we announced $85 million in expected proforma revenue.

Jon Asbjørn Bø: We are growing the company. Last year, that was my first quarterly presentation in Q2, we announced NOK 85 million in expected pro forma revenue. Now we are expecting NOK 1 billion. We have done quite a good start, and we will continue to grow the cash earnings per share for the shareholders. Thank you very much.

Speaker #1: No, we are expecting $1 billion, so we have made quite a good start, and we will continue to grow the earnings per share for the shareholders.

Browse all earnings call transcripts

Half Year 2026 Fjord Defence Group ASA Earnings Call

Request TrialDemo

Fjord Defence Group

Earnings