STOCKHOLM, Feb 5 (Reuters) - Saab reported an operating profit above expectations and raised its medium-term organic sales growth target to around 22%, from 18%, as it presented fourth-quarter
Saab Increases Sales Growth Forecast Amid Rising Defence Spending
Saab's Sales Growth and Defence Contracts
By Johan Ahlander
Strong Sales Performance
STOCKHOLM, Feb 5 (Reuters) - Sweden's Saab raised its medium-term sales growth target on Thursday as European defence companies continue to benefit from a surge in government spending.
Major Contracts Secured
Facing a reduction in U.S. support under President Donald Trump and Russia's invasion of Ukraine on its doorstep, Europe is ramping up spending on its military.
Financial Outlook and Dividends
Saab, whose products range from Gripen fighter jets and submarines to missiles and advanced electronics, reported a 67% year-on-year jump in fourth-quarter operating profit to 3.26 billion Swedish crowns ($362 million), beating analysts' average forecast of 2.75 billion crowns in an LSEG poll.
It also raised its organic sales growth forecast for 2023 to 2027 to 22% from 18%.
STRONG SALES, LARGE ORDERS
"We have had much stronger sales for the first three years of the target range and for the remaining two years this implies an average growth of around 20% per year," CEO Micael Johansson told Reuters.
Saab shares were up 2.8% at 0823 GMT. They have gained 21% so far this year and more than tripled in value in the last 12 months.
The board proposed a dividend of 2.40 crowns per share for 2025, up from 2.00 crowns a year earlier.
Order bookings amounted to 100 billion crowns in the quarter and the order backlog stood at 275 billion crowns, up 47% from 187 billion at the beginning of 2025.
"We've had continued very strong sales but then we have also had some larger orders in the quarter which is driving up order intake to these high levels," Johansson said.
During the quarter, Saab secured a 3.1 billion euro contract for 17 Gripen fighters with Colombia, an order for two GlobalEye aircraft for 12.3 billion crowns, and an order for the completion of two submarines worth 9.6 billion crowns.
($1 = 9.0051 Swedish crowns)
(Reporting by Johan Ahlander. Editing by Bernadette Baum and Mark Potter)
