Q3 2025

EARNINGS CALL PRESENTATION





NOVEMBER 05, 2025

Kongsberg Automotive Q3 2025 Earnings Call

TODAY'S PRESENTERS


TROND FISKUM

PRESIDENT & CEO

ERIK MAGELSSEN

CFO

3

AGENDA

EXECUTIVE SUMMARY FINANCIAL UPDATE SUMMARY & OUTLOOK

Q&A



4

EXECUTIVE SUMMARY


5

Executive summary

EBIT GROWTH AND SIGNIFICANT CASH FLOW IMPROVEMENTS DESPITE CHALLENGING MARKET

  • Q3 revenue was MEUR 162.9, Q3 2024 was MEUR 181.6

    • Revenue 10,3 % lower in Q3 2025

  • Q3 EBIT was 4.9 MEUR (3.0%), Q3 2024 was 1.1 MEUR (0.6%)

    • EBIT 445 % higher in Q3 2025

  • Q3 cash flow was 6.6 MEUR, Q3 2024 was MEUR -5.2, an improvement of MEUR 11.8

  • Cost reduction programs progress according to schedule

  • Tariff costs were fully mitigated in the quarter

  • Increased risk of certain warranty liabilities



    6

    Executive summary

    Q3 FINANCIALS - INCREASE IN EBIT ON LOWER REVENUE LEVEL - POSITIVE CASH FLOW AND SIGNIFICANT INCREASE IN 12-MONTH TREND

    FREE CASH FLOW

    MEUR

    EBIT

    MEUR

    5

    -5

    -15

    0.6 % 0.6 % 1.2 %

    1.1 1.1 2.2

    -10.5

+4.2

-5.2

-15.9

-1.5 %

-0.9

-12.4

162.9

185.2

181.6

192.4

190.0

REVENUES

MEUR

3.0 %

-2.9

4.9

% (Isolated Q)

+6.6

-0.6

  • Revenues: Down 10.3% vs. Q3 2024, impacted by a negative currency effect of MEUR 5.4, primarily due to a weaker USD and challenging market conditions

  • EBIT: Increased compared to Q3 2024, driven by cost savings and lower warranty accruals. The improvement was partially offset by reduced contribution from lower revenues and impairment of non-current assets

  • Free Cash Flow: Improved by MEUR 11.8 year-over-year, mainly due to a lower cost base and stricter investment controls, and a positive impact of currency and translation effects on cash flow

    -25

    -20.0 -20.3

    12M Trend

    Q3

    2024

    Q4 Q1 Q2 Q3

    2025



    Executive summary

    IMPROVED COST BASE

    REDUCTION IN INDIRECT COST BASE ONGOING

    M E A S U R E S I N 2 0 2 4

    ~17 M€

    • OVERHEAD COST REDUCTION

    • SUPPORT FUNCTION OPTIMIZATION

      M E A S U R E S I N 2 0 2 5

      ~10 M€

    • REDUCTION OF ~1 50 POSITIONS

    • ADDITIONAL ANNUAL SAVINGS OF AT LEAST MEUR 10 WITH FULL EFFECT FROM Q3 2025

      N E W P R O G R A M L A U N C H E D M A Y 2 0 2 5

      ~15 M€

    • REDUCTION OF ~150 POSITIONS

7

  • 42 MEUR in improved annual cost base which will give, when fully implemented, an EBIT improvement of 4-5% points with stable revenues

    The full impact of these programs is starting to materialize, with full impact coming during 2026

    Due to lower market activity, we are implementing additional cost-saving measures to further align our cost base with current market realities and to safeguard

    • FULL EFFECT FROM Q3 2026

    • INCLUDES SIGNIFICANT REDUCTION OF CORPORATE AND

      SUPPORT STAFF FUNCTIONS

      IN PROGRESS

      profitability



      Executive summary 8

      BUSINESS WINS Q3 2025

      33.8M€

      LIFETIME REVENUES, MEUR

      PER BUSINESS AREA PER CUSTOMER SEGMENT

      25.4

      FLOW CONTROL



      SYSTEMS

      8.2

      AFTERMARKET

      DRIVE CONTROL

      SYSTEMS

      8.4



      TRUCK, TRAILER,

      BUS

      14.9

      0.8

      1.0

      8.9

      INDUSTRIAL



      • Tariffs and market uncertainty has led to a slowdown in the business wins

      • KA remains with a strong pipeline of business opportunities and no major contract opportunities have been lost in 2025

      • Going forward, KA will only announce strategically important business wins. Investor Policy will be updated to reflect this





      OFF-ROAD*

      PASSENGER CARS



      * Includes agriculture, construction, power sports and leisure vehicles

      9

      Executive summary

      WARRANTY COSTS REMAIN A CONCERN
      • Comprehensive review after Q2 issues revealed risk of additional future liabilities
      • Problems stem primarily from historically unfavorable contracts and suboptimal warranty management practices
      • Individuals responsible are no longer with KA, were a part of leadership changes earlier this year
      • Financial impact cannot yet be reliably estimated due to complexity and variability of potential outcomes
      • Proactive measures implemented: stronger warranty management and contractual safeguards
      • Further details will be shared once there is greater clarity on potential exposure


      Executive summary

      TARIFFS IMPACT AND EFFECTIVE MITIGATION ACTIONS

  • KA has previously informed that we expect to recover 100% of tariff costs. Process is taking some time due to customer documentation requirements and commercial discussion

  • KA has maintained a firm and consistent position in all customer negotiations: KA is not able to absorb these extra costs and tariff-related costs must inevitably be borne by end consumers

  • This approach has given results: Direct cost impact of tariffs in Q3 was effectively neutralized by passing costs through to customers

  • We have also proactively managed the recent semiconductor supply concerns involving Nexperia and do not anticipate any short-term disruptions

  • Primary negative consequence of tariffs for KA remains the impact on

overall market demand - most notably in the United States

1 0



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Kongsberg Automotive ASA published this content on November 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 05, 2025 at 06:34 UTC.