SAAB (SAAB) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 sales and EBIT, with strong demand and robust order intake across all business areas; order bookings reached SEK 20,861m and backlog SEK 202,408m.

• Upgraded 2025 guidance for organic sales growth to 20%-24% (from 16%-20%), with EBIT expected to outpace sales growth and positive cash flow anticipated.

• Major international contracts and negotiations, including Gripen E/F for Thailand, MSHORAD for Czech Republic, and ongoing opportunities in Ukraine, Colombia, and France.

• Significant capacity investments underway, including new factories in the US and India, expansion in Sweden, and increased R&D in drone and counter-drone systems.

• Sustainability progress includes a 4% year-over-year CO2 reduction, new biogas facility, and increased female representation.

Financial highlights

• Q3 sales reached SEK 15,871m (up 17% year-over-year, 18.3% organic); EBIT up 16% to SEK 1,374m, margin 8.7%; gross margin improved to 22.9%.

• Nine-month sales up 20% (21% organic) to SEK 51.4bn, EBIT up 30% to SEK 4.8bn, and net income up 37% to SEK 3.8bn.

• Order backlog at SEK 202bn, up 14% YoY, with 73% international orders; Dynamics and Surveillance comprise 71% of the backlog.

• Cash and liquid investments at SEK 12.2bn; net debt at SEK 667m; net debt/EBITDA at 0.1x.

• Investments increased to SEK 4.9bn, up SEK 1.7bn from last year, mainly in capacity and R&D.

Outlook and guidance

• 2025 organic sales growth guidance raised to 20%-24%, with EBIT growth to exceed sales growth.

• Positive operational cash flow expected for the full year, supported by large customer payments in Q4.

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