SAAB (SAAB) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw 32% organic sales growth year-over-year, with all business areas reporting higher sales, led by Dynamics at 73%.

• Accelerated growth and strengthened market position amid continued geopolitical tensions and high customer interest across the portfolio.

• Significant progress in key campaigns for Gripen and GlobalEye, with formal negotiations and new agreements underway, including a joint declaration with France.

• High pace in project execution and deliveries, supported by ongoing investments in capacity, R&D, and digital transformation, including AI-enabled Gripen test flights.

• Focus on software transformation and AI technologies to enable new capabilities.

Financial highlights

• Q2 2025 sales reached SEK 19.8bn, up 30.4% year-over-year; organic growth at 32%.

• EBIT increased 49% year-over-year to SEK 1,977m, with EBIT margin improving to 10.0% from 8.8%.

• EPS after dilution: SEK 2.83 (up 53%); net income: SEK 1,536m (up 53%).

• Order intake at SEK 28.4bn, mainly from small and medium-sized orders; backlog increased 8% to SEK 198bn.

• Operational cash flow at SEK -1.1bn, reflecting capacity investments and timing of customer payments.

Outlook and guidance

• Full-year 2025 organic sales growth outlook raised to 16–20% (from 12–16%) based on strong H1 performance and robust backlog.

• EBIT growth expected to exceed organic sales growth; positive operational cash flow projected for the year.

• Medium-term (2023–2027): organic sales CAGR ~18%, EBIT growth above sales, cash conversion ≥60%.

• High market demand expected to persist, driven by NATO and European defense spending targets.