Swedish defence group Saab AB reported a robust first-quarter performance, driven by strong demand across its portfolio of surveillance and combat systems amid a supportive global security backdrop.
For the January-March period, Saab's sales rose 21% year-on-year to 19.2 billion Swedish crowns ($2.07 billion), with reported organic sales growth of 23.6%. The company recorded an operating profit of 1.92 billion crowns, a 32% increase from the prior year, producing an operating margin of 10.0%, up from 9.2% a year earlier. Net income rose to 1.47 billion crowns from 1.27 billion crowns.
Management described the growth as broad-based across all business areas. Surveillance delivered particularly strong results, where deliveries of radar systems and project execution contributed to a 32% jump in sales in that division. Demand remained elevated across Saab’s wider product range, including fighter jets, missile systems and naval solutions.
Order intake for the quarter fell 5% to 18.2 billion crowns, a decline the company attributed to a lower number of large contracts during the period. At the same time, medium-sized orders increased sharply. Saab’s order backlog stood at 274 billion crowns at the end of the quarter.
Chief Executive Micael Johansson commented that Saab is benefitting from sustained global defence spending amid geopolitical tensions, while continuing to invest in capacity expansion and digitalisation to support future delivery capability.
The company reiterated that it has no defence-related sales exposure to Belarus, Russia or Iran, but said it is closely monitoring the potential impact on the business from the war in Ukraine and ongoing conflicts in the Middle East.
Looking ahead, Saab said it remains on track to meet its target of average organic sales growth of around 22% annually over 2023-2027. The company also expects operating income to grow faster than sales, citing the benefits of scale and efficiency gains as supporting factors.
Context and outlook
Saab’s quarterly report highlights a mix of accelerating revenue and profits alongside an easing in large contract awards. The firm is emphasising capacity investment and digital initiatives as it seeks to sustain the recent growth trajectory and translate higher sales into stronger operating income.