Swedish defense group Saab reported a 16% increase in third-quarter operating profit to 1.37 billion crowns, slightly below analyst forecasts, on robust 18% organic sales growth. Amid soaring military spending in Europe, the company raised its full-year sales growth forecast to 20-24% and reiterated expectations for operating profit to grow even faster. With a substantial order backlog of 202.4 billion crowns and shares up 111% year-to-date, Saab is actively scaling production and investing in R&D to capitalize on strong market demand, including potential large aircraft exports to Ukraine.
Saab reported a 16% year-over-year operating profit increase to 1.37 billion crowns in Q3, marginally missing the LSEG analyst forecast of 1.38 billion, despite achieving robust 18% organic sales growth. The company subsequently raised its full-year like-for-like sales growth forecast to 20-24% from 16-20%, reiterating expectations for operating profit to grow even faster than sales. This optimistic outlook is underpinned by soaring military spending across Europe, a direct consequence of geopolitical tensions, which has propelled Saab's shares up 111% year-to-date. CEO Micael Johansson emphasized strong market activity and demand, alongside strategic investments in new technology and research and development to capture further growth. Despite a slight decrease in quarterly order intake, Saab maintains a substantial order backlog of 202.4 billion crowns, providing significant revenue visibility. The potential for a large-scale export of 100-150 Gripen E jets to Ukraine, following a recent cooperation agreement, further highlights the strong demand and future growth prospects for the defense contractor.
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