Saab, the global aerospace and defence company, has released its financial results for January-June 2023.
The company reported increased order bookings, sales, and operational income in the second quarter. Bolstered by this performance, Saab has upgraded its outlook for organic sales growth for the year.
“Our order bookings and sales continued to have a strong momentum in the second quarter,” stated Micael Johansson, President and CEO of Saab.
With an ambitious growth path ahead of us, meeting our customer commitments and deliveries is crucial for Saab’s success. We are currently putting relentless effort into project execution, deliveries, and capacity, which, in turn, is driving sales growth.”
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Key highlights from the second quarter include a solid order intake of Skr14,315m ($1.37bn), showcasing growth in medium-sized orders. Although the figure decreased compared to the previous year, which had a significant GlobalEye order from Sweden, the company’s performance remains robust.
Sales experienced an increase, reaching Skr12,475m, reflecting an organic growth rate of 22%. This growth was primarily driven by the high pace of project activity across all business areas. An example of a contract from Q2 included Australia ordering an additional supply of Carl-Gustaf M4 weapons.
The financial results also demonstrated a notable improvement in operating income (EBIT), which surged by 44% and amounted to Skr1,065m. The operating margin expanded to 8.5% from the previous 7.3%.
When excluding items affecting comparability, the margin remained strong at 8.3%. Additionally, Saab’s net income reached Skr798m, indicating an increase from last year’s period.
Despite the solid financial performance, operational cash flow in the quarter declined to Skr-1,548m, primarily attributed to higher outflows of supplier payments. However, the operating cash flow for H1 2023 was reported at Skr1,524m , showcasing the company’s sound financial health.
An auspicious aspect of Saab’s Q2 2023 report is the net liquidity position, which reached Skr3.7bn. This solid liquidity indicates that Saab is stable enough to invest in growth opportunities.
Based on its impressive Q2 results and confident projections for the future, Saab has decided to upgrade its outlook for organic sales growth in 2023. The company anticipates organic sales growth to be between 16% and 20%, surpassing the previous outlook of approximately 15%.
This optimistic forecast reflects the management’s confidence in Saab’s continued success and ability to capitalize on its strong market position.
In Saab’s Q1 report, Saab showed a strong order intake, with a total order intake of Skr17bn ($16.4bn), marking a 110% increase from Q1 2022.