STOCKHOLM, April 23 (Reuters) - Swedish defence material group Saab reported a bigger-than-expected rise in first-quarter operating profit on Thursday and said all business areas delivered double-
Defence group Saab posts better than expected quarterly operating profit
Saab's Strong First-Quarter Performance and Outlook
By Johan Ahlander
Quarterly Financial Results
STOCKHOLM, April 23 (Reuters) - Swedish aerospace and defence group Saab reported a larger than expected rise in first-quarter operating profit on Thursday and said it was on track to deliver on medium-term targets.
Profit and Revenue Highlights
Saab, which makes products ranging from Gripen fighter jets and submarines to missiles and advanced electronics, reported a 32% rise in first-quarter operating profit to 1.92 billion Swedish crowns ($208 million), beating expectations of 1.71 billion crowns in an LSEG poll of analysts.
Production and Market Demand
The group is scaling up production to meet demand from Europe and beyond as Russia's invasion of Ukraine and conflict in the Middle East drive a continued rise in arms expenditure.
CEO Commentary
"It's full speed ahead," CEO Micael Johansson told Reuters. "There's a lot of activity in the market and we have a lot in the pipeline."
Growth Across Business Areas
All business areas delivered sales growth in double-digit percentages and the company is on course to meet the medium-term targets, he added.
Medium-Term Targets
Saab's medium-term targets for 2023-2027 project organic sales growth of about 22%, operating income growth above sales growth and a cash conversion ratio of more than 60%.
Sales and Organic Growth
Sales amounted to 19.16 billion crowns, up from 15.79 billion crowns in the first quarter of 2025. That equated to organic sales growth of 23.6%, just shy of the estimated 19.82 billion crowns.
Regional Demand and Order Backlog
Impact of Geopolitical Events
Johansson said Saab's supply chains have not yet been affected by the war in Iran but there has been high demand from the Gulf region for its missile and drone detecting sensors.
Order Bookings and Backlog
Order bookings amounted to 18.24 billion crowns in the quarter and the backlog stood at 274 billion crowns.
Additional Information
($1 = 9.2357 Swedish crowns)
(Reporting by Johan AhlanderEditing by Essi Lehto and David Goodman)
