Saab Q3 Orders Surge 215% on Ukraine Fighter Jet Deal and European Rearmament
Swedish defense giant Saab reported third-quarter revenues and operating profit above expectations, fueled by a 215% surge in new orders driven by a Gripen fighter jet deal for Ukraine.
Swedish defense giant Saab reported third-quarter earnings and revenues that beat analyst expectations, driven by a more than threefold surge in new orders fueled by a major contract to supply Gripen fighter jets to Ukraine.
New orders reached 65.8 billion Swedish crowns ($6.6 billion), compared to 20.9 billion crowns ($2.1 billion) in the same period last year, marking a 215% jump and exceeding the 56.4 billion crowns ($5.66 billion) predicted by analysts. Sales for the third quarter totaled 20.6 billion crowns ($2.07 billion), beating the market consensus of 20 billion crowns ($2.01 billion). Operating profit stood at 1.95 billion crowns ($196 million), also outperforming expectations of 1.9 billion crowns ($191 million).
European Rearmament Drives Growth
The strong results come against the backdrop of an ongoing rearmament trend across European nations, which are scrambling to translate spending commitments into tangible military capabilities. The orders received by Saab included a 24.6 billion crown ($2.47 billion) contract with Sweden's defense procurement agency to supply 16 Gripen E fighter jets to Ukraine. The contract was signed in June and booked in the third quarter, with deliveries scheduled for 2029-2030.
Third-quarter bookings also included a 10.1 billion crown ($1.01 billion) order for GlobalEye airborne early warning and control aircraft from an undisclosed Middle Eastern customer, and an 8.7 billion crown ($873 million) order to supply equipment for Germany's naval vessels. Saab is traded on the Stockholm Stock Exchange with a market capitalization of 343 billion Swedish crowns, or approximately $34.5 billion.
Executive Commentary
"The growing demand from customers is reflected in winning large contracts, including the supply of Gripen aircraft to Ukraine, GlobalEye aircraft, and an order related to Germany's new frigates," said CEO Micael Johansson.
