STOCKHOLM (Reuters) -Swedish defence equipment maker Saab reported a marginally bigger-than-expected rise in quarterly operating earnings and maintained its outlook for surging sales and earnings this year as countries race to scale up militaries. Saab profit forecast exceeded expectations as defense orders surged. This strong performance highlights Saab’s ability to meet growing demand in the defense sector.
Saab repeated on Friday its forecast for sales to grow organically by 15-20% this year with operating earnings to rise even more. #SaabProfitForecast
The maker of defence material including missiles, submarines and the Gripen fighter jet said operating profit rose 25% to 1.33 billion Swedish crowns ($125 million) in the second quarter to come in just ahead of the 1.29 billion seen by analysts according to LSEG estimates.
The company, which competes with defence giants such as U.S. Lockheed Martin, France’s Dassault Aviation and Britain’s BAE Systems, is facing booming demand spurred by global tensions, the war in Ukraine and Sweden’s recent NATO accession.
Saab, which also sells equipment for civilian use to customers such as Airbus and Boeing, said order bookings shot up 176% in the quarter with its backlog of orders growing to a record 182.7 billion crowns.
“This marks the second-highest quarter in terms of order bookings in the company’s history,” Saab CEO Micael Johansson said in a statement. #SaabProfitForecast
“The urgent need to provide Ukraine with more support and a clear uplift of European defence capabilities will remain a driver of growth in the industry for many years.”
Furthermore, Saab’s strategic focus on innovation and technology continues to pay off. The company secured several significant contracts, reinforcing its market position. Consequently, Saab profit forecast remains optimistic for the upcoming quarters, driven by ongoing defense spending.
