Swedish defence firm Saab has revised its organic sales forecast upwards after registering a 17.2% increase in fiscal 2025 (FY25) third-quarter (Q3) sales.
The company’s sales for Q3 FY25 reached Skr15.87bn ($1.69bn), driven by strong project execution and increased deliveries, notably from the Aeronautics division.
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Saab predicts its organic sales for 2025 to grow between 20-24%, superseding the previous estimate of 16-20%.
During the quarter, Saab’s gross income rose by 25%, equating to Skr3.64bn. This increase in gross margin was attributed to efficient project execution.
The company’s net income slightly increased to Skr975m from Skr972m with earnings per share at Skr1.77.
Saab earnings before interest and taxes (EBIT) grew by 16% to reach Skr1.37bn in Q3 FY25, with an operating margin of 8.7%, while earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a 15% increase to Skr2.17bn.
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By GlobalDataThe company recorded order bookings of Skr20.86bn in Q3 FY25, driven by medium-sized orders, which grew to Skr9.42bn.
Small and large orders decreased compared to the same quarter last year, posting figures of Skr3.12bn and Skr8.32bn, respectively.
Saab president and CEO Micael Johansson said: “We delivered solid growth across all business areas in the third quarter while market demand remains high. Based on our strong backlog and good execution so far this year, we are upgrading our full-year outlook. Our efforts to scale operations and increase production capacity while ensuring timely customer deliveries will support Saab’s future profitable growth.”
In the first three quarters of the year, Saab’s sales amounted to Skr51.45bn, signalling an increase of 19.9% year-over-year (YoY).
Sales related to Sweden during the January-September 2025 period saw a boost of 22%, making up for 43% of total sales while international market sales witnessed an increase of 18%.
Gross income for this nine-month period rose by 24% to hit Skr11.62bn due to increased sales volumes across all business areas.
The EBITDA for this period rose by 26% to Skr7.14bn, and operating income saw a surge of 30% to total Skr4.81bn.
The company continue to expect its EBIT growth to outpace organic sales growth whilst operational cash flow remains positive.
Recently, the Swedish Defence Materiel Administration (FMV) extended its contract with Saab for the continued conceptual studies for future fighter systems, a deal estimated to be worth around Skr2.68bn ($280m).
