Kongsberg Automotive (KOA) Status Update summary

Strategic direction and market positioning

• Focus on profitable growth toward 2028, prioritizing commercial vehicles and industrial applications, with over 80% of future revenues expected from these segments.

• Portfolio transformation finalized, shifting away from passenger car and non-core businesses to higher-margin, resilient, and growth product areas.

• New business wins at record levels, with a secured order book covering 90% of 2026 and 80% of 2028 anticipated revenues.

• Regional rebalancing underway to reduce European concentration and increase presence in North America and China.

• Strategic cost savings and operational efficiencies implemented to offset weaker market demand and lower break-even turnover.

Business transformation and growth ambitions

• Strategic turnaround underway with cost reductions of over €17M annually and new cost initiatives targeting €10M more in savings.

• Headquarters reestablished in Kongsberg, Norway, and refinancing completed with a new Nordic bond.

• Long-term goals set: revenues above €1B and EBIT margin at or above 8.5% by 2028.

• Ongoing optimization of global footprint and a focus on building a commercially driven, cross-functional team.

• Book-to-bill ratio above 2.0 in 2024, with €1.23B in new business wins year-to-date.

Product innovation and technology

• Core product focus on air brake couplings, automated manual transmissions, and electric actuators, balancing mature and emerging technologies.

• Electrification, autonomization, safety, and sustainability trends drive product development, with increased content per vehicle in new powertrains.

• Proprietary push-in air brake technology and diversification into air suspension and other applications strengthen market leadership.

• Rapid product development cycles, especially in Asia, enable first-to-market launches in electric actuation.

• Product launches in 2024 include gear control units (€523M lifetime value), ARC rotary actuators (€26M), and fluid transfer assemblies (€34M).