Sweden's Saab Posts Higher-Than-Expected Organic Sales Growth for 2024

Sweden's Saab AB, a leading defense and security company, has reported higher-than-expected organic sales growth for the full year 2024. The company's sales for the fourth quarter are expected to reach approximately SEK 20.9 billion, with an organic sales growth of 29.3% and an operating margin of 9.4%. Saab's strong performance can be attributed to several key factors, including increasing demand from European nations, investments in capacity and automation, and a diverse portfolio of products and services.



One of the main drivers of Saab's growth is the increasing demand from European nations, which are looking to replenish their defense stocks. This demand has led to a higher-than-expected sales development in the fourth quarter, driven by exceptional project execution. Saab's President and CEO, Micael Johansson, stated that the company is growing to meet this increasing demand by investing in capacity, automating its production, and building new plants. These investments have enabled Saab to deliver strong growth and improve its profitability.



Saab's diverse portfolio of products and services, which includes electronic defense systems, aeronautical systems, armament equipment and systems, naval systems, support services, and security and defense solutions, has contributed to the company's strong order growth. Saab has received significant orders from various customers, such as a large defense equipment and systems contract from a Western customer, MSHORAD orders from Lithuania, and a Giraffe 1X radar order from Sweden. Additionally, Saab was awarded a five-year framework contract by the U.S. Army for their Individual Assault Munition (IAM) programme, with a potential value of SEK 5 billion.



Saab's strong order intake in the third quarter, which increased by 41% to SEK 21,173m (14,977), reflects the company's growth strategy. The company's investments in capacity and production expansion, as well as its commitment to developing innovative solutions and acquiring companies in prioritized areas, have contributed to its strong order growth. Saab's broad portfolio and strong demand have resulted in a backlog of SEK 190 billion, which will support the company's future growth.

In conclusion, Saab's higher-than-expected organic sales growth in 2024 can be attributed to the company's investments in capacity and automation, its diverse portfolio of products and services, and the increasing demand from European nations. Saab's strong order intake and backlog position the company well for future growth and success in the defense and security market.