Saab secures $220 million Latvian defence contract

STOCKHOLM - Swedish defence company Saab, whose stock has surged over 82% in the past six months and commands a market capitalization of nearly $21 billion, has entered into a framework agreement with the Latvian Ministry of Defence for its RBS 70 NG short-range ground-based air defence system. The deal, valued at SEK 2.1 billion (approximately $220 million), involves the delivery of RBS 70 NG firing units, missiles, and training equipment, with deliveries scheduled between 2026 and 2030.

The RBS 70 NG system is designed to counter a variety of aerial threats, including aircraft, drones, and missiles, at distances up to nine kilometers. It is equipped with an automatic target tracker and a built-in night vision capability, enhancing its operational readiness in various conditions. According to InvestingPro data, Saab’s strong financial position is evidenced by its revenue growth of 23.5% and robust balance sheet with more cash than debt. Unlock 15+ additional exclusive insights about Saab with an InvestingPro subscription.

Görgen Johansson, head of Saab’s business area Dynamics, commented on the deal, stating that the delivery will significantly bolster the Latvian National Armed Forces’ ability to detect and engage with aerial threats.

Saab, headquartered in Sweden, is known for its broad portfolio in defence and security solutions, which includes aeronautics, weapons, command and control systems, sensors, and underwater systems. The company employs around 25,000 individuals globally and is integral to the defence capabilities of several nations. With an "GOOD" financial health score from InvestingPro, and analysts forecasting continued profitability, Saab maintains a strong position in the aerospace and defense sector.

This transaction is in line with the EU Market Abuse Regulation requirements and was officially announced on March 31, 2025. The information in this article is based on a press release statement.

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