Sweden’s Saab AB reported a strong start to 2025

The maker of Gripen fighter jets, missiles, and submarines saw Q1 operating profit rise ~28% to SEK 1.45 billion, slightly above market consensus (SEK 1.42 bn). Revenue hit SEK 15.8 billion – Saab’s “best first quarter ever” – and order bookings increased 4% year-on-year despite an already high order backlog of SEK 189 billion. Crucially, Saab’s management upgraded its full-year guidance, now projecting 2025 organic sales growth of 12–16% (versus a lower prior range) and an even larger rise in operating income. They voiced confidence despite global trade uncertainties, and indeed noted that defence demand is robust enough to offset potential headwinds like tariff issues. Saab’s share price has reflected this optimism – it has nearly doubled (+~80%) since January, outperforming most peers as investors bet on its niche role supplying many European countries’ arsenals. Saab’s performance highlights how even mid-sized defence firms are thriving. Historically, Saab faced constraints as a smaller player outside the U.S. market, but heightened European defence budgets have opened opportunities: more orders for Gripen fighters (Central/Eastern Europe), anti-tank weapons (which Sweden is supplying to Ukraine), and naval systems. The company’s ability to modestly beat earnings and then hike its forecast indicates it is not capacity-constrained and can scale production efficiently. One area to watch is exportability – with Sweden joining NATO, Saab might access new markets. Overall, its Q1 results strengthen Saab’s case that it can be a key beneficiary of Europe’s rearmament, combining technological edge with newfound demand.

Sources

Swedish defence group Saab posts narrow beat, repeats upbeat guidance

Saab AB (SAABF) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic Global Expansion