Delfin's Deep Dives: Saab and Poland Pioneering Naval Intelligence in a Tense Baltic

The launch of Poland's first Delfin-class SIGINT ship, ORP Jerzy Różycki, on July 1, 2025, marks a pivotal moment for European naval modernization. This vessel, the first of two advanced intelligence-gathering ships designed to counter evolving security threats, underscores a broader trend: the defense sector is primed for growth as nations prioritize cybersecurity, maritime reconnaissance, and autonomy from U.S.-centric defense systems. For investors, Saab AB (SAAB.ST), the Swedish tech powerhouse leading the Delfin program, and its Polish partner Remontowa Shipbuilding, offer compelling plays on this structural shift.

The Delfin Program: A Blueprint for Modern Maritime Intelligence

The Delfin project, valued at €620 million, replaces Poland's aging 1970s-era SIGINT ships with vessels equipped to monitor the full electromagnetic spectrum. The ships' advanced systems—combining electronic, communications, and acoustic intelligence (ELINT, COMINT, MASINT)—are designed to detect and analyze signals from radar, submarines, and even underwater drones. Their 74-meter frame, built by Remontowa, is based on Sweden's Artemis-class design, a proven platform for maritime reconnaissance.

Saab's role as prime contractor is central to the program's success. The company integrates its world-class mission systems, including the Sea Giraffe radar and Erieye surveillance technology, into the Delfin's infrastructure. This expertise positions Saab to capitalize on a growing market: global spending on electronic warfare and SIGINT systems is projected to exceed $20 billion by 2030, driven by rising tensions in the Baltic Sea, Black Sea, and East Asia.

Saab's share price has risen 140% since 2020, reflecting investor confidence in its dominance of niche markets like air defense and naval electronics. The Delfin program's success could further elevate its valuation, especially as European nations seek to reduce reliance on U.S. suppliers like Lockheed Martin (LMT) or Raytheon (RTX).

Why This Matters for Investors

1. European Defense Autonomy: The Delfin program exemplifies Poland's push to modernize its military without dependency on American systems. This aligns with broader EU goals to create a sovereign defense industrial base. Saab, as a non-U.S. supplier with advanced tech, is uniquely positioned to benefit.
2. Scalability and Export Potential: The Delfin design's adaptability could attract other NATO members, such as the Baltic states or Romania, seeking cost-effective SIGINT solutions. Remontowa's construction expertise in Poland—a key NATO frontline state—further lowers geopolitical risks for European buyers.
3. Cybersecurity as a Military Necessity: SIGINT vessels like the Delfin are critical for detecting and countering cyber threats at sea. As nations invest in hybrid warfare capabilities, demand for such systems will grow.

Risks and Considerations

While the Delfin program is on track for delivery by late 2027, geopolitical risks remain. Delays in European defense funding or shifts in political priorities could impact Saab's order book. However, Poland's defense budget has grown at an average annual rate of 12% since 2020, and NATO's 2030 defense spending targets bode well for sustained demand.

Investment Recommendations

• Saab AB (SAAB.ST): Investors should consider adding Saab to portfolios as a long-term play on European defense modernization. Its order backlog of €22 billion (as of Q1 2025) includes contracts beyond Delfin, such as upgrades for Sweden's navy.
• Polish Defense Subcontractors: Firms like Remontowa Shipbuilding and electronics specialist ELWRO, though less internationally recognized, stand to benefit from Poland's defense spending boom. Investors can access them via the Warsaw Stock Exchange (WSE) or through ETFs like the iShares MSCI Poland ETF (EPOL).

Conclusion: A Strategic Tide Rising

The Delfin program is more than a shipbuilding project—it's a catalyst for European defense innovation. By marrying advanced technology with regional security needs, Saab and its partners are creating a template for future contracts. For investors, this signals a golden age for defense tech companies capable of delivering cybersecurity, autonomy, and scalability. In an era of escalating threats, the Delfin's deep dives into the Baltic's waters may just chart the course for the next decade of defense investment.

Poland's defense spending has surged to 2.5% of GDP in 2025, up from 1.5% in 2015—a trend set to continue as Warsaw prioritizes deterrence. This bodes well for local subcontractors and their international partners.

Investors seeking exposure to resilient, high-growth sectors should look seaward. The Delfin's launch is no mere milestone—it's a wake-up call for the defense industry's next wave.