Shares of Kongsberg Automotive (OL:KOA) fell over 6% on Tuesday before paring losses to trade down 0.5%.

The Norwegian car parts supplier reported that weak global automotive markets and negative currency effects of 5.5 million euros ($6.4 million) impacted its second-quarter results.

The company expects improved margins in the second half of 2025 from cost-cutting measures, but warned that demand will remain weak in North America before a predicted market recovery in 2026.

CEO Trond Fiskum stated that the market outlook remains unfavorable for the second half of 2025, with revenues projected to fall below both first-half 2025 and second-half 2024 levels.