SAAB (SAAB) Q1 2025 earnings summary

Executive summary

• Q1 delivered record sales of SEK 15.8bn, up 11% year-over-year, with strong order intake and growth across all business areas, supported by significant contracts from Latvia and Germany.

• Market momentum driven by increased European defense spending and sovereign capability focus, with capacity ramp-up and 800+ new employees added.

• EBIT rose 22% to SEK 1,454m, margin improved to 9.2% from 8.4%, and net income increased 63% to SEK 1,277m; EPS up 64% to SEK 2.35.

• Operational cash flow improved from minus SEK 2bn to minus SEK 14m, driven by strong customer payments and project execution.

• Dividend of SEK 2.00 per share approved for FY2024.

Financial highlights

• Order backlog reached SEK 189bn, up 19% year-over-year, with 74% from international customers.

• Book-to-bill ratio at 1.2x, with Dynamics and Surveillance representing 72% of backlog.

• EBITDA up 18% to SEK 2,140m; EBITDA margin at 13.6%.

• Gross margin improved to 23.5% (from 21.7% YoY).

• Net debt/EBITDA at -0.25x; equity/assets ratio at 37.8%; cash and liquid investments SEK 12.7bn.

Outlook and guidance

• 2025 guidance: organic sales growth of 12–16%, with EBIT growth expected to outpace sales and positive operational cash flow projected.

• Medium-term ambition: organic sales CAGR of 18% (2023–2027), with cash conversion minimum 60% over five years.

• Geopolitical uncertainties and potential trade tariffs noted, but business seen as resilient due to regionalized supply chains and defense agreements.