Kongsberg Automotive Holding ASA ( (KGAUF) ) has released its Q2 earnings. Here is a breakdown of the information Kongsberg Automotive Holding ASA presented to its investors.
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Kongsberg Automotive Holding ASA, a key player in the automotive and commercial vehicle industry, specializes in manufacturing advanced vehicle systems and components, with a strong presence in Europe and the Americas.
In the second quarter of 2025, Kongsberg Automotive reported a revenue decline to MEUR 192.4 from MEUR 209.3 in the same period last year, attributed to a weaker global automotive market. The company also experienced a negative EBIT of MEUR -2.9, a significant drop from MEUR 6.4 in Q2 2024, primarily due to increased warranty expenses and asset impairments.
Key financial highlights include the launch of a cost reduction program expected to save MEUR 15 annually, a strategic acquisition of Chassis Autonomy to boost growth in the steer-by-wire technology sector, and a restructuring of operations including the closure of the Zurich office and consolidation of Swedish operations. Despite a challenging market, the company improved its free cash flow to MEUR -0.9 from MEUR -4.4 in Q2 2024.
Looking ahead, Kongsberg Automotive anticipates a challenging second half of 2025 with projected revenue declines, but expects EBIT margins to improve due to ongoing cost-saving measures. The company remains optimistic about its long-term potential, focusing on restructuring, cash flow improvement, and innovation to drive future growth.