Saab profit beats forecasts as Europe’s defense boom drives orders
Saab’s second-quarter order intake hit SEK 40 billion, lifting backlog to SEK 182.721 billion as Europe’s rearmament wave fed demand.
Saab's second-quarter operating profit beat forecasts as orders jumped to SEK 40 billion, the company's second-highest quarterly intake on record. The Swedish defense group said its order backlog climbed 19% to SEK 182.721 billion from SEK 153.409 billion at the start of 2024, a sharp sign that the war-driven buildout in Europe is feeding through to industrial production.
The results fit a broader rearmament cycle that has taken hold as governments replenish stockpiles, modernize air defenses and place fresh orders after years of underinvestment in defense capacity. Saab, whose business spans Gripen fighter jets, radar, missile and surveillance systems, said its products are sold to more than 100 countries and that it operates in more than 30, underlining how widely the spending surge is spreading across its customer base.
Saab is trying to turn that demand into output. The company said it was increasing capacity investments while focusing on securing competencies and expanding its workforce, a familiar challenge for defense manufacturers that must scale production without missing delivery deadlines or compromising quality. Micael Johansson and Christian Luiga presented the first-half results on July 19, 2024, with the company signaling that the latest order flow was broad-based rather than tied to a single contract or market.
The pipeline already includes major awards that stretch years into the future. Saab said a roughly SEK 7.7 billion order from the government of a Western country covered systems from its Dynamics and Surveillance business areas, with deliveries planned for 2027 and 2028. It also received an order from Sweden’s Swedish Defence Materiel Administration for Gripen development resources, reinforcing the role of domestic procurement alongside export demand.
For investors, the key question is whether the boom can last. Defense spending has risen across Europe as NATO members boost modernization and respond to Russia’s war in Ukraine, and Saab’s swelling backlog suggests that procurement decisions are now locked into a multi-year pipeline. The company’s strong profit and order growth point to a sector that is more insulated than many industrial businesses from cyclical weakness, but its ability to keep converting orders into deliveries will depend on supply chains, export controls and how long governments keep spending at this pace.
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