Swedish defense manufacturer Saab reported third-quarter results on Friday that exceeded market expectations, driven by a sharp increase in new orders. The company's order intake more than tripled year-over-year, reaching 65.8 billion Swedish kronor ($6.6 billion), compared with 20.9 billion kronor in the same period last year. This figure surpassed the 56.4 billion kronor forecast by FactSet.
The surge in demand was primarily fueled by a contract signed in June to supply Ukraine with 16 Gripen E fighter jets. The deal, valued at 24.6 billion kronor, was booked in the third quarter, with deliveries scheduled for 2029-2030. Saab also reported third-quarter sales of 20.6 billion kronor, which exceeded FactSet estimates of 20 billion kronor. Earnings before interest and taxes (EBIT) stood at 1.95 billion kronor, slightly above the forecasted 1.9 billion kronor.
CEO Micael Johansson attributed the performance to strong customer demand, highlighting major contract awards including the Gripen deal for Ukraine, orders for GlobalEye surveillance aircraft, and systems for German frigates. Beyond the Ukrainian contract, Saab secured a 10.1 billion kronor order for its GlobalEye military surveillance aircraft from an undisclosed customer in the Middle East. The company also received an 8.7 billion kronor order for systems intended for German frigates.
Saab’s product line spans fighter jets, submarines, missiles, and advanced electronics. The company has experienced exponential order growth since Russia launched its full-scale invasion of Ukraine in early 2022. The results arrive as European governments work to convert defense spending pledges into actual military capability.
Despite the robust order book and rising profitability, Saab shares have declined in recent months along with other defense peers. Some investors have expressed concern that valuations may have outpaced the industry's capacity to deliver on its expanded commitments.