Kitron Raises Outlook on Defense Super Cycle as Q4 Delivers Record Results

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Kitron reported record quarterly revenue and operating profit, driven by accelerating demand in the defense/aerospace market sector. An all-time high order backlog also provides strong visibility for 2026.

Kitron's revenue for the fourth quarter was EUR 233.8 million, an increase of 46 percent from 160.6 million in the same quarter last year. The defense/aerospace market sector continued to show particularly strong growth.

Fourth-quarter operating profit (EBIT) was EUR 22.5 million, compared with 11.8 million in the same quarter last year. Profitability expressed as EBIT margin was 9.6 percent, compared with 7.3 percent in the same quarter last year. This is in line with the strategic target of maintaining an EBIT margin above 9 percent.

The order backlog ended at an all-time high of EUR 709.3 million, an increase of 50 percent compared with last year and 19 percent compared with the third quarter of 2025.

Peter Nilsson, Kitron's CEO, comments, "In the fourth quarter, we delivered a step-up in revenue and margins, generated solid cash flow, and ended the year with a record order backlog. We also continued to strengthen our industrial platform through capacity expansions and the acquisition of DeltaNordic. With a high-quality backlog, a disciplined cash culture, and a flexible multi-regional platform, Kitron is well-positioned for the next growth phase.”

Profit after tax amounted to EUR 17.2 million, compared with 4.9 million in the same quarter of the previous year. This corresponds to earnings per share of EUR 0.08, up from 0.02 last year. For the full year 2025, earnings per share were EUR 0.22, up from 0.14 in 2024.

Dividend

The board proposes an ordinary dividend of NOK 0.70 per share (NOK 0.35).

Outlook

Kitron is raising its outlook for 2026. Due to increased demand within defense and data center expansion, Kitron now expects revenue to be between EUR 900 and 1050 million. Operating profit (EBIT) is expected to be between EUR 84 and 108 million. The previous outlook was for revenue between EUR 855 and 943 million, with an operating profit (EBIT) between EUR 77 and 93 million.