​Nammo 2018 Annual Report: Double Digit Growth and Record Order Books

Nammo’s results for 2018 are in, with the company closing out the year with record high order books at NOK 5.8 billion and all time high revenues of NOK 4.9 billion.

“I think 2018 is a year that says a lot about Nammo, and who we are. We demonstrated that we are at the forefront of technological developments, pushing boundaries in ammunition and rocket motor design. We saw that the market is responding well to what we are delivering, allowing us to break new records in revenues and order stock. But it also showed that we are a company that is working hard to prepare ourselves for the future,” said Morten Brandtzæg, President and CEO of the Nammo Group.

The Group saw a revenue increase of 10.4% from 2017, as well as an order stock increase of 25%.(Full document available below)

“What is particularly encouraging about these results is that they are not dependent on a single area or product. In fact, we have been able to bring in substantial new contracts for several different products, both from the US and from Europe,” said Mr. Brandtzæg.

Major wins from 2018 included an agreement with General Dynamics to supply 30 mm armor penetrators for use by both the US Army and Navy. This multi-year agreement will see the delivery significant numbers of the high-performance tungsten rods to the US customer.

“Ever since the first US acquisition of multipurpose-ammunition nearly 50 years ago we have been providing them with some of the most effective ammunition in their inventory, and this agreement ensures that we will continue to do so for years to come,” said Mr. Brandtzæg.

Going forward Nammo will focus on improving profitability, which at NOK 362 million was relatively unchanged from 2017. Even though these results were affected by more than 90 million in one-time restructuring costs, Nammo has nevertheless introduced a comprehensive profit improvement program which is already in its second year.

“We are where we are today thanks to decades of technology investment, and that is also how we will build the future of Nammo. Continuing that level of investment, however, requires increased profits, and we are now on track to deliver just that,” said Mr. Brandtzæg.