Saab has announced an increase in net sales to $1.3bn (Skr13.86bn) during the fourth quarter (Q4) of 2022, up 16% compared to $1.14bn (Skr11.94bn) in the year prior. Primarily due to an increase and growth in large and medium-sized orders.
The company said its net income for Q4 totalled $126.12m (Skr1.15bn). In the fiscal year prior, the net income was $76.21m (Skr794m).
Net income for the year was $219.14m (Skr2.28bn), operating cash flow from continuing operations was $248.84m (Skr2.59bn), and free cash flow was $179.58m (Skr1.87bn). The increase in net income has been attributed to the reportedly increased activity in orders related to Ukraine, while there has been an increase in orders from countries whose military hardware stocks have been depleted and require replenishing due to the support provided to Ukraine.
The amount of order bookings reflects strong growth due to the positive financial impact of the war in Ukraine on aerospace and defence manufacturers’ business. Especially as the order bookings for Saab in Q4 2021 show that the company was down 33% compared to Q4 2020.
Saab’s Dynamics, Surveillance, Kockums, and Combitech business segments recorded a year-on-year increase in sales for the fourth quarter of 2022. However, the aeronautics segment was down 7% on the previous fiscal year in operating income due to tough competition in aviation services.
In the fiscal year 2022, dynamics order bookings totalled $819.1m (Skr8.52bn) in Q4 2022, while surveillance reported order bookings of $858.70m (Skr8.94bn), both 63% increases from the fiscal year 2021. Saab’s order bookings in Q4 2022 amounted to $2.86bn (Skr29.86bn), up 144% from $1.17m (Skr12.21bn) in Q4 2021.
Saab CEO Micael Johansson said: “Dynamics had an exceptionally favourable mix, and Surveillance and Kockums also showed margin improvement. The T-7 ramp-up and the civil business in Aeronautics continued to have negative impact on results. We expect these challenges to phase out over the coming years.”
The company’s annual operating income (EBIT) was $313.97m (Skr3.27bn), with an operating margin of 7.8%. Heading into 2023, the company has decided, based on Saab’s financial results and future outlook, to propose an increase of the dividend to Skr5.30 per share for 2022.
Johansson continued: “Saab’s order intake in the quarter was strong and confirmed the strength of our product portfolio with growth in both Sweden and internationally. In the period, we strengthened our close relationship with the UK and Sweden with orders for the proven anti-tank weapon system NLAW.
“We also received upgrade and support contracts for Gripen to Sweden, which added to Aeronautics and Surveillance orders. The large order for two signal intelligence ships to Poland further strengthened the order backlog in Surveillance and Kockums.”
Within Q4, the Brazilian Air Force began using the Saab-made Gripen E for operational activities at the turn of the year.