SAAB (SAAB) Q2 2026 earnings summary

Executive summary

• Achieved a record order backlog of SEK 318 billion, driven by major contracts for submarines in Poland and Gripen E fighters for Ukraine, with additional significant wins for GlobalEye with Canada and NATO.

• Strong operational execution and production ramp-up led to increased customer deliveries and profitable growth, supported by ongoing investments in capacity and recruitment of approximately 3,000 net new employees annually.

• Significant contracts include SEK 47 billion for A26 submarines for Poland and SEK 24.6 billion for Gripen E for Ukraine.

• Increased R&D investment by SEK 700 million year-over-year in the first half, focusing on future capabilities such as autonomy, advanced sensors, and AI-enabled systems.

• Major international demand for defence solutions, with 80% of order bookings from international markets.

Financial highlights

• Organic sales growth of 29.8% year-over-year, with sales totaling SEK 25.5 billion and a record gross margin of 22.6% in Q2 2026.

• EBIT margin improved to 11%, with EBIT rising 41% year-over-year to SEK 2.8 billion and group EBIT at record levels.

• Cash conversion reached 53% after the quarter, with positive operational cash flow of SEK 1 billion for the first half.

• Net liquidity stands at SEK 2.5 billion, with cash and liquid investments of SEK 16.9–17 billion and a BBB+ investment grade rating reaffirmed by S&P.

• Return on equity at 15.9% and return on capital employed at 17.0% as of June 2026.

Outlook and guidance

• Medium-term targets (2023-2027) reaffirmed: organic sales growth of around 22% CAGR, EBIT growth above sales growth, and cash conversion above 60%.

• Strong market demand and increasing defense spending support continued growth, with capacity expansion and disciplined execution underpinning confidence in targets.

• Guidance remains unchanged despite strong order intake and growth, with management citing the need for further delivery execution over the next six quarters.