In its Friday announcement, Saab reiterated its forecast for organic sales growth of 15-20% in 2024, with an even more significant rise in operating earnings. For the second quarter, the company posted a 25% increase in operating profit, reaching 1.33 billion SEK (€116 million) compared to analysts’ estimates of 1.29 billion SEK (€113 million), according to LSEG.
Saab, renowned for its production of defence materials such as missiles, submarines, and the Gripen fighter jet, competes with industry giants like the U.S.’s Lockheed Martin, France’s Dassault Aviation, and Britain’s BAE Systems. The compan
In the civilian sector, Saab supplies equipment to customers including Boeing. The company reported a 176% year-on-year increase in order bookings for the quarter, with its backlog reaching a record 182.7 billion SEK (€15.96 billion).
“This marks the second-highest quarter in terms of order bookings in the company’s history,” CEO Micael Johansson stated. “The urgent need to provide Ukraine with more support and a clear uplift of European defence capabilities will remain a driver of growth in the industry for many years.”
Saab’s shares have risen by more than 70% this year, continuing a trend of robust gains in recent years. Despite this, the stock was down 1.3% at 0720 GMT. Citi analysts commented, “Overall, a solid set of results that met ambitious consensus expectations. However, given the very high valuation and growth expectations, no guidance upgrades may disappoint. On the other hand, extremely strong orders affirm the growth narrative.”
The company is expanding its production capacity in Sweden and India and plans to establish a new production plant in the United States, although the location has not yet been chosen. Johansson disclosed to Reuters that Saab has added a net 1,600 employees in the first half of the year.
“There’s just an incredible amount of things happening,” Johansson remarked. “This is something that in general is going well, though it’s not without growing pains.”
