Saab has reported sales of Skr15.79bn ($1.63bn) for the first quarter, an increase of 11.3% and an organic sales growth of 10.9% compare with Skr14.18bn in Q1 2024.
The Swedish defence contractor noted the growth was supported by all business areas (BAs) in the quarter, including Combitech, with Dynamics and Aeronautics providing largest contributions.
Go deeper with GlobalData
The company said the quarter was highlighted by robust customer engagement within the market and a heightened emphasis on bolstering the European defence-industrial foundation.
Earnings before interest and taxes (EBIT) for Q1 2025 increased by 22.1% to Skr1.45bn, exceeding sales growth and driving margin improvement, with the EBIT margin at 9.2% from 8.4% in Q1 2024.
The improvement in EBIT margin improvement driven by profitability improvements across all BAs.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw an 17.6% increase in Q1 2025, amounting to Skr2.14bn, compared to Skr1.82bn in the same quarter of the previous year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataNet income was Skr1.27bn for Q1, marking a 63% increase from Skr784m in the same period a year earlier.
The earnings per share (EPS) after dilution for the quarter was Skr2.35, up from Skr1.43 in Q1 of the previous year.
The enhancements in net income and EPS are principally attributed to the growth in EBIT and a better financial net outcome.
Saab’s order bookings reached Skr19.14bn, showing a rise from Skr18.49bn in the corresponding period in 2024, driven by balanced mix of small, medium, and large-sized orders.
The order backlog experienced a 19% year-over-year surge. In the first quarter, the book-to-bill ratio stood at 1.2 times. The growth in backlog is primarily propelled by the Dynamics and Surveillance segments, which now constitute 72% of the total, up from 59% in the first quarter of the previous year.
The company said that it is rapidly scaling up its capacity and has augmented its workforce by hiring more than 800 new staff members.
Saab president and CEO Micael Johansson said: “We had a solid start to the year with sales growth across all business areas and delivered Saab’s strongest first quarter to date.
“Fully committed to contributing to the European defence build-up, we will continue to develop in line with our growth plans and capture market opportunities by focusing on customer deliveries and investing in capacity to meet the high demand.”
For the 2025 outlook, the company expects organic sales to grow between 12-16%. EBIT is projected to increase at a rate surpassing that of organic sales growth.
Additionally, the company anticipates a positive operational cash flow.
In February, Saab concluded the year 2024 on a solid note, with organic sales expansion exceeding expectations, improved operational efficiency, and a favourable cash flow.
