What's Happening?
Saab, a prominent defense and security company, reported a significant increase in its order bookings for the fourth quarter of 2025, reaching Skr100.11 billion ($11.07 billion), which marks a 470% year-on-year increase. This surge is attributed to several major contracts secured during the period. The company's large orders amounted to Skr82.55 billion, while medium-sized orders totaled Skr13.94 billion. Saab's quarterly sales also saw a substantial rise, reaching Skr27.69 billion, a 32.8% increase from the previous year. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) rose to Skr4.20 billion, up from Skr2.73 billion a year earlier. For the full year, Saab's order bookings totaled Skr168.52 billion, representing
a 74% increase over the previous year. The order backlog at year-end stood at Skr274.53 billion, with 72% attributable to international markets.
Why It's Important?
The significant increase in Saab's order bookings highlights the growing demand for defense and security solutions globally. This surge in orders not only strengthens Saab's market position but also reflects the broader geopolitical climate where nations are increasingly investing in defense capabilities. The company's strong financial performance, with increased sales and improved margins, underscores its ability to capitalize on this demand. Saab's strategic investments in capacity expansion and new capabilities are likely to support its future growth, positioning it well to meet the evolving needs of its clients. The company's revised medium-term targets, projecting a compound annual organic sales growth of approximately 22%, indicate confidence in sustained demand and market momentum.
What's Next?
Following the strong results, Saab has revised its medium-term targets for 2023 to 2027, projecting a compound annual organic sales growth of approximately 22%, up from the previous target of 18%. The company expects its earnings before interest and taxes (EBIT) growth to outpace organic sales growth, while maintaining a cumulative cash conversion target above 60%. Saab's continued investment in capacity expansion and new capabilities is expected to support its growth trajectory. The company's recent contract wins, including a significant deal with France's General Directorate of Armaments and Poland's selection of Saab's A26 Blekinge-class submarines, further bolster its order backlog and market presence.
