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Saab reports strong performance and growth in year-end 2023 report

By Defence Industry Europe

Saab, the Swedish defence and security company, announced significant strides in its year-end report for 2023, emphasizing a pivotal shift in market dynamics and embarking on a new path of growth.

 

“2023 marked a step change for Saab with a changed market reality and a new growth journey. Our performance in 2023 reflects our ambitions in this new environment, with a strong increase in orders and sales, investments in competence, capacity and R&D, while improving earnings and generating a positive cash flow. Based on our unique position and ability to execute, Saab is a company with significant long-term opportunities,” says Micael Johansson, President and CEO, Saab.

 

 

The fourth quarter of 2023 was particularly strong for Saab, with key highlights including:

  • An order intake of SEK 31,501 million, up from SEK 29,866 million the previous year, bolstered by SEK 6 billion from the reassessment of index clauses. Medium and small orders grew by 57% and 19%, respectively.
  • Group sales reached SEK 16,122 million, up from SEK 13,866 million, with an organic growth rate of 16% across most business areas.
  • EBITDA increased to SEK 2,032 million, with an EBITDA margin of 12.6%.
  • EBIT improved to SEK 1,420 million, thanks to significant contributions from the Surveillance and Kockums divisions, marking an EBIT margin of 8.8%.
  • Net income rose to SEK 1,254 million, and earnings per share increased by 9% to SEK 9.08.
  • Operational cash flow saw a substantial improvement, reaching SEK 3,691 million, driven by a higher level of milestone payments.
  • The company maintained a solid net liquidity position of SEK 2.3 billion at the end of the period.

 

350 x 200

 

Reflecting confidence in its financial health and outlook, Saab’s Board proposed a dividend of SEK 6.40 per share for 2023, an increase from the previous year’s SEK 5.30, to be paid in two equal installments.

Looking ahead to 2024, Saab anticipates organic sales growth between 12-16%, with operating income growth expected to outpace sales growth and operational cash flow remaining positive. Furthermore, the company has revised its medium-term target for organic sales growth, setting a new goal of around 15% compound annual growth rate (CAGR) for the period 2023-2027, up from the previous target of around 10%.

 

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