Swedish defence contractor Saab has revised its monetary projections for full 12 months 2025 upward following a 31.5% surge in natural gross sales in the course of the second quarter.
Gross sales within the quarter climbed to Skr19.79bn ($1.9bn), marking a 30.4% enhance from the earlier 12 months.
This development was constant throughout all enterprise areas, together with Combitech, with Dynamics making notable gross sales contribution.
Saab’s earnings earlier than curiosity, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at Skr2.83bn, translating to an EBITDA margin of 14.3%.
The corporate’s working earnings (EBIT) noticed a considerable rise of 49%, reaching Skr1.98bn and reaching a margin of 10.0%, largely propelled by strong ends in the Dynamics and Surveillance enterprise areas.
Internet earnings for Q2 FY25 additionally skilled a big enhance, rising by 52% to Skr1.54bn in comparison with Skr1.01bn in the identical quarter of the earlier 12 months. Its diluted earnings per share adopted go well with, leaping by 53% to Skr2.83.
Throughout the second quarter, the corporate secured new orders totalling Skr28.403bn, a determine primarily fuelled by a big variety of small and medium-sized contracts.
Within the first half of the fiscal 12 months, Saab reported gross sales totalling Skr35.58bn, a year-over-year enhance of 21.2%.
Each EBITDA and EBIT confirmed robust development of 31% and 36%, respectively, with EBIT reaching Skr3.43bn and sustaining an working margin of 9.6%.
The corporate raised its anticipated natural gross sales development to the vary of 16-20%, up from the beforehand forecasted vary of 12-16%.
The corporate additionally expects EBIT development to outpace natural gross sales development and maintains its forecast for optimistic operational money stream for your entire 12 months.
Saab president and CEO Micael Johansson mentioned: “Following the Nato summit in June, alliance members have now dedicated to extend defence expenditures to five% of GDP by 2035, of which 1.5% of GDP is devoted for broader defence and safety infrastructure investments. In Europe, there’s a rising name for unity and cooperation to create deterrence, and in Sweden, a choice has been made to increase defence spending by Skr300bn to fulfill the brand new Nato targets.
“Whereas it will allow important development for our business, the shift from defence planning and coverage alignment to procurement takes time. Saab’s broad portfolio and talent to ship main applied sciences uniquely positions us to assist nations of their functionality wants. We’re persevering with to put money into capability will increase and are proactively working in shut cooperation with our suppliers to safe future deliveries.”
