Saab Q3 orders triple to 65.8 billion kronor on Ukraine Gripen deal
The Swedish defense maker beat analyst forecasts for sales and profit, helped by a 24.6 billion kronor contract for 16 Gripen E fighter jets for Ukraine.
At a glance
- Saab's new orders more than tripled to 65.8 billion kronor in the third quarter, beating FactSet expectations of 56.4 billion kronor.
- Sales reached 20.6 billion kronor and EBIT was 1.95 billion kronor, both ahead of analyst forecasts.
- A 24.6 billion kronor contract for 16 Gripen E jets for Ukraine, signed in June, was booked in the quarter for delivery in 2029-2030.
Swedish defense manufacturer Saab reported better-than-expected third-quarter earnings and revenue on Friday, with new orders more than tripling from a year earlier, boosted by a deal to supply Gripen fighter jets to Ukraine.
New orders came in at 65.8 billion Swedish kronor ($6.6 billion), up from 20.9 billion kronor in the same period a year earlier and ahead of the 56.4 billion kronor expected by analysts polled by FactSet.
Quarterly sales reached 20.6 billion kronor, beating FactSet expectations of 20 billion kronor. Earnings before interest and taxes (EBIT) came in at 1.95 billion kronor, also above forecasts of 1.9 billion kronor.
Ukraine Gripen contract booked in the quarter
The order intake included a 24.6 billion kronor contract for 16 Gripen E fighter jets for Ukraine, signed in June and booked in the third quarter. Deliveries are scheduled for 2029-2030.
"The growing customer demand is reflected in major contract awards, including Gripen for Ukraine, GlobalEye and an order related to Germany's new frigates," CEO Micael Johansson said in a statement.
Other orders booked in the quarter included a 10.1 billion kronor order for Saab's GlobalEye military surveillance aircraft from an undisclosed customer in the Middle East, and an 8.7 billion kronor order for systems for German frigates.
Defense spending push
The results land as European governments race to turn defense spending pledges into military capability.
Saab's products range from Gripen fighter jets and submarines to missiles and advanced electronics. The company has seen rapid order growth since Russia's full-scale invasion of Ukraine in early 2022.
Even with a growing order book, rising sales and improving profitability, Saab's stock — like those of many peers — has taken a hit in recent months as some investors question whether valuations have run ahead of the industry's ability to deliver.
Source: CNBC.
Questions and answers
- How much did Saab's orders grow in the third quarter?
- New orders came in at 65.8 billion Swedish kronor ($6.6 billion), up from 20.9 billion kronor a year earlier and above the 56.4 billion kronor expected by FactSet analysts.
- What is the Gripen deal with Ukraine?
- It is a 24.6 billion kronor contract for 16 Gripen E fighter jets for Ukraine, signed in June and booked in the third quarter, with deliveries scheduled for 2029-2030.
- Why has Saab's stock fallen despite strong results?
- Saab's stock has taken a hit in recent months, like many peers, as some investors question whether valuations have run ahead of the industry's ability to deliver.
