Saab reported third-quarter earnings of 20.6 billion Swedish kronor, surpassing FactSet's expectations of 20 billion kronor. The company saw new orders rise to 65.8 billion kronor, a substantial increase from 20.9 billion kronor a year earlier, and exceeding the forecast of 56.4 billion kronor.
A key driver of this growth was a 24.6 billion kronor contract for 16 Gripen E fighter jets for Ukraine, which was signed in June and recorded in the third quarter, with deliveries planned for 2029-2030.
CEO Micael Johansson noted that the rising demand is evident in significant contract awards, including the Gripen deal, a 10.1 billion kronor order for military surveillance aircraft GlobalEye, and an 8.7 billion kronor order for systems related to new German frigates.
Despite the impressive order growth and profitability, Saab's stock has faced pressure recently, as some investors express concerns that valuations may have outpaced the industry's capacity to fulfill these orders