Saab raises sales growth target as European defense spending surges
Saab raised its sales targets today as European defense spending booms. Record orders for fighter jets and submarines drove a major jump in quarterly profits.
Insights:
Swedish defense manufacturer Saab AB (publ) announced today that it has raised its medium-term organic sales growth forecast for the 2023-2027 period to 22 percent, up from the previous guidance of 18 percent. The adjustment follows a reported 67 percent year-on-year jump in fourth-quarter operating profit and record-breaking order activity. This upward revision reflects stronger sales and order activity amid rising government defence spending across Europe.
The company, which is led by Micael Johansson micael johansson, reported that order bookings reached 100 billion Swedish crowns during the final quarter of the year. This influx of new business has pushed the total order backlog to 275 billion crowns, representing a 47 percent increase. The significant growth in the backlog is attributed to several sizable contract awards disclosed in the quarter, including a Gripen fighter contract with Colombia 
CO, a GlobalEye aircraft order, and a submarine completion order. These developments have materially expanded the company's project pipeline in Sweden 
SE.
CO, a GlobalEye aircraft order, and a submarine completion order. These developments have materially expanded the company's project pipeline in Sweden SE.
