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Swedish defence group Saab posts narrow beat, repeats upbeat guidance
Published by Global Banking and Finance Review
Posted on April 25, 2025
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Published by Global Banking and Finance Review
Posted on April 25, 2025
By Niklas Pollard
STOCKHOLM (Reuters) -Swedish defence material maker Saab on Friday reported first-quarter operating profit just above market expectations and stood by guidance for sharply higher sales and earnings this year on the back of surging military spending.
The company said in a statement that its operating earnings rose to 1.45 billion Swedish crowns ($150.6 million) from a year-ago 1.19 billion crowns, narrowly topping a mean forecast of 1.42 billion crowns seen in an LSEG compilation of analyst forecasts.
The maker of military equipment ranging from missiles and advanced electronics to submarines and the Gripen fighter jet repeated its full-year outlook for sales to grow 12%-16% organically with operating profit to rise even more.
Saab is riding a defence spending boom brought on by Russia's invasion of Ukraine and related worries over security in Europe, its main market and home to well over half its sales.
Shares in the company, which competes with giants such as U.S. Lockheed Martin, France's Dassault Aviation and Britain's BAE Systems, have risen nearly 80% since the start of the year, adding to gains in previous years.
But the tariff turmoil triggered by U.S. President Donald Trump has raised uncertainty about supply chains and broader economic activity, a concern also for Saab, though it only generates roughly a tenth of its sales in North America.
"Ongoing geopolitical tensions and uncertainty surrounding tariffs present challenges and make it difficult to predict the future," Saab CEO Micael Johansson said in a statement.
"Despite these uncertainties, we remain confident in our company's future and reiterate our outlook for 2025."
Saab, which also sells civilian products to customers such as Airbus and Boeing, said order bookings rose 4% in the quarter with its backlog of orders growing to 189 billion crowns from 158 billion a year ago.
($1 = 9.6264 Swedish crowns)
(Reporting by Niklas Pollard, editing by Essi Lehto and Mrigank Dhaniwala)