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KIT: Defence And Aerospace Orders Will Drive Future Earnings Upside

Defence and Aerospace Demand Will Accelerate Revenue and Earnings Through 2026

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KIT
AnalystConsensusTarget
Not Invested
Published 19 Feb 2025

Update shared on 22 Dec 2025

Fair value Increased 3.02%
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AnalystConsensusTarget's Fair Value
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1Y
106.7%
7D
4.7%

Analysts have raised their price target for Kitron from approximately NOK 75 to NOK 77 per share, citing expectations of stronger revenue growth, slightly higher profit margins, and a lower assumed future price-to-earnings multiple. Together, these factors support a higher fair value despite a modestly reduced discount rate.

What's in the News

  • Secured a EUR 100 million defence and aerospace order for deliveries across 2025 and 2026, underscoring strong demand in mission critical electronics (Client Announcements)
  • Won a EUR 55 million contract from a defence and aerospace customer for deliveries in 2026, further building the order backlog in the sector (Client Announcements)
  • Received a EUR 19 million follow on order for guidance, control and targeting systems from a long term defence customer, reinforcing Kitron's role in advanced weapon systems supply chains (Client Announcements)
  • Awarded a EUR 17 million contract to supply electronic components for combat vehicle systems from the second half of 2026, expanding its land systems portfolio (Client Announcements)
  • Raised 2025 earnings guidance, now targeting revenues of EUR 700 to 740 million and EBIT of EUR 59 to 66 million, driven by accelerating defence and aerospace demand (Corporate Guidance)

Valuation Changes

  • Fair Value: Raised slightly from about NOK 75.1 to NOK 77.3 per share, reflecting a modest uplift in the intrinsic valuation.
  • Discount Rate: Reduced marginally from roughly 7.96 percent to 7.93 percent, indicating a slightly lower perceived risk profile.
  • Revenue Growth: Increased meaningfully from around 18.0 percent to 23.8 percent, highlighting stronger expectations for top line expansion.
  • Net Profit Margin: Risen modestly from approximately 7.1 percent to 7.6 percent, pointing to anticipated efficiency and profitability gains.
  • Future P/E: Fallen significantly from about 15.1x to 12.5x, implying a lower multiple applied to future earnings despite the higher fair value.

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Disclaimer

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