Saab AB (publ) Q2 2025 Earnings | 07/18/2025

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Saab AB (publ) reported robust results for the second quarter of 2025, confirming record sales growth and stronger profitability amid continued global defense sector demand and expanding order backlog. The company’s revenue for the quarter surged by 30.4% year-over-year, reaching SEK19,786 million, driven by organic sales growth of 32%. This performance was fueled across all business areas, with exceptional growth in the Dynamics division, which noted a 73% year-over-year increase in sales. Surveillance and other core units also contributed to the sustained expansion, supported by heightened activity and higher volumes. Order intake for the quarter stood at SEK28,403 million. Despite being lower than the previous year, the figure reflected substantial growth in small and medium-sized orders, while the overall backlog increased to SEK197,552 million, up 8% annually, underlining solid long-term demand. EBITDA increased by 44% to SEK2,831 million, corresponding to an EBITDA margin of 14.3%, up from 12.9% a year ago. Operating profit (EBIT) improved by 49% to SEK1,977 million, driven by strong business segment results and aided by a one-off SEK105 million contribution from the minority portfolio, yielding an EBIT margin of 10.0% compared to 8.8% in Q2 2024. Net profit rose impressively by 52% year-over-year, reaching SEK1,536 million, with earnings per share rising to SEK2.83 from SEK1.85 in the previous year's second quarter. Despite these gains, the company recorded a negative operational cash flow of SEK-1,136 million for the quarter, reflecting ongoing investments to build capacity and position Saab for future market opportunities. Notably, the company’s net liquidity position turned positive to SEK690 million. Management upgraded guidance for the full year 2025, now anticipating organic sales growth between 16% and 20%, raising outlook from the prior range of 12%-16%. They continue to expect EBIT growth to outpace organic sales growth and target positive operational cash flow for the year. Strategic highlights included investments in R&D, augmented production capacity, and expanding international partnerships, such as deeper collaborations with France and proactive involvement in ongoing aerospace and defense programs. Saab’s management remains confident in the company's trajectory, emphasizing strong global market demand, a healthy and growing order backlog, and continuous investment in technology and talent to support innovation and future growth. The long-term outlook is supported by defense modernization efforts in key markets and Saab’s proven expertise across aeronautics, weapons, surveillance, and command systems. #SaabAB #Q22025 #Earnings #FinancialResults #SalesGrowth #Profitability #Defense #Aerospace #OrderBacklog #Dynamics #Surveillance #Guidance #NetIncome #EBIT #EBITDA #Innovation #MarketUpdate