Saab lifts 2025 sales outlook after 18% organic growth, strong defense demand

Investing.com -- Swedish defense and aerospace group Saab AB on Friday raised its full-year sales outlook after posting double-digit growth in the third quarter, citing strong demand for fighter aircraft, radar systems and air defense platforms, sending shares up over 5%.

The company now expects organic sales growth between 20% and 24% for 2025, compared with its previous forecast of 16% to 20%. 

Operating income growth is projected to exceed sales growth, and operational cash flow is expected to be positive for the year.

Sales in the quarter rose 17% to SEK 15.87 billion, equal to 18.3% organic growth, up from SEK 13.55 billion a year earlier. 

Operating income increased 16% to SEK 1.37 billion, with an 8.7% margin, while net income was SEK 975 million, compared with SEK 972 million in the same quarter last year.

Chief executive Micael Johansson said Saab’s results reflected continued momentum in its core defense programs and expanding international demand.

“When we summarise the third quarter, we conclude that market activity was high and demand was strong,” Johansson said in  statement. “Our order bookings amounted to SEK 20.9 (21.2) billion corresponding to a book-to-bill ratio of 1.3 and our order backlog now stands at SEK 202.4 billion.”

Order bookings totaled SEK 20.86 billion, compared with SEK 21.17 billion a year earlier. Medium-sized orders more than doubled to SEK 9.42 billion, offsetting declines in small and large contracts. 

The backlog rose from SEK 187.2 billion at the start of the year to SEK 202.4 billion at the end of September.

Key orders included a SEK 5.3 billion contract for four Gripen E/F fighter aircraft for Thailand, a SEK 1.8 billion order from the Czech Republic for the MSHORAD mobile air-defense system, and a SEK 550 million order for Giraffe 4A radar systems for a Latin American country.

All business areas reported sales growth, led by Aeronautics, which posted a 34% rise to SEK 4.44 billion, supported by Gripen deliveries. 

Dynamics and Surveillance also grew, driven by higher deliveries of air-defense and radar systems. Saab’s Kockums naval unit saw sales climb 17% to SEK 1.86 billion.

Operational cash flow fell sharply to SEK 142 million from SEK 3.19 billion, due to increased investments and the timing of milestone payments. Net debt stood at SEK 667 million, compared with SEK 478 million a year earlier.

For the first nine months of 2025, sales rose 20% to SEK 51.45 billion, and operating income increased 30% to SEK 4.81 billion. 

Net income grew 37% to SEK 3.79 billion, while earnings per share after dilution were SEK 6.95, up from SEK 5.08 in the same period last year.

During the quarter, Saab was selected to lead NATO’s Allied Underwater Battlespace Mission Network project and announced plans to develop a large unmanned underwater vehicle with Sweden’s Defence Materiel Administration.

After the reporting period, Saab received a SEK 9.6 billion order for two Blekinge-class submarines and a SEK 4 billion contract for Gripen C/D and E support services.