Saab CEO Micael Johansson said the company was already boosting output and could soon build between 20 and 30 jets annually, but would need to double that rate if the Ukraine agreement is confirmed. “It’s absolutely no impossibility to dramatically increase the pace if we need to,” he told Reuters, noting that no order contract had yet been signed.
He added that Saab was considering producing Gripens at new locations outside of its current sites in Sweden and Brazil. Johansson also said he hoped for industrial partnerships in Ukraine, and possibly elsewhere in Europe or in Canada, to support expanded production capacity.
Shares in Saab rose 6.5% on Friday morning following the announcement, bringing the company’s year-to-date gain to 124%. The surge reflects growing investor confidence driven by the war in Ukraine and increased NATO defence spending.
Saab has not disclosed the potential value of the Ukraine deal, but in the third quarter it sold four Gripen aircraft to Thailand in a 5.3 billion Swedish crown order. The Gripen, in service since 1996, is a fourth-generation, single-engine supersonic fighter seen by analysts as a reliable, lower-cost option compared to more expensive fifth-generation jets like the F-35.
Alongside the Ukraine developments, Saab also raised its full-year sales growth forecast to 20–24%, up from July’s 16–20% projection. “We have a nice order backlog and deliveries are going well and our profitability continues to develop in the right direction,” Johansson said.
Bookings in the third quarter reached 20.9 billion Swedish crowns, and the order backlog stood at 202.4 billion. Saab also recorded operating profit of 1.37 billion crowns for the quarter, up 16% from the previous year, with organic sales growth at 18%.
Source: Reuters.
