Saab reports 28% profit increase, raises sales forecast amid Sweden’s NATO accession

In response to this increased demand, Saab has uplifted its organic sales growth forecast for 2024, now expecting a rise of 15-20%, up from the previously projected 12-16%. Micael Johansson, CEO of Saab, expressed optimism about the company’s market performance. “We are doing very well in the market,” Johansson told Reuters. He highlighted a strong order intake across both medium and small orders as foundational for the company’s robust health.

The ascendancy in orders is timely, coinciding with Sweden’s impending NATO membership, which Johansson noted has already facilitated Saab’s entry into alliance tender processes. “We have received at least three orders for support weapons and Robot-70s from that body. We had difficulty accessing that when we were not members,” he elaborated.

With its strategic positioning against global defence leaders like Lockheed Martin, France’s Dassault, and Britain’s BAE Systems, Saab has been capitalizing on the geopolitical shifts and Sweden’s NATO maneuvers. The company has recorded an order intake of SEK 18.5 billion this quarter, rising from SEK 17 billion last year, with its order backlog swelling to SEK 158 billion from 133 billion.

To manage this burgeoning demand, Saab has significantly ramped up its production capabilities. The company has added nearly 2,500 new employees and increased its capital expenditures by more than 50% in 2023. An additional 725 personnel were recruited in the first quarter of the current year, bolstering its workforce to meet the growing order demands.