Saab Ab (publ) Stock Earnings Reports

Saab reported a strong Q2 2026 driven by major platform contract wins (notably a SEK 47 billion submarine contract with Poland and a first batch Gripen E contract with Ukraine pending booking next quarter). Order intake was ~SEK 68 billion and the backlog reached a record SEK 318 billion with a healthy mix of near-term and long-term deliverables. Operational execution and capacity investments have improved gross margin and profitability; Saab is recruiting ~3,000 net employees per year and increasing production capacity across businesses (Gripen, GlobalEye, Giraffe 1X radars, Dynamics ammunition/missiles, naval shipyards). R&D investment is materially higher (internally funded R&D at SEK 4.4 billion on a rolling 12-month basis, +~SEK 700m year-over-year in H1) to support future capabilities (autonomy, sensors, AI-enabled C2, advanced weapons). Surveillance and Dynamics delivered strong margin expansion and ramp-ups (high demand for Giraffe 1X and various munitions/weapon systems). Naval profitability was hit by a SEK ~200m write-down related to not being selected for the Swedish frigate program, but the Polish submarine contract materially strengthens long-term revenue visibility. Cash flow for H1 improved to ~SEK +1 billion (Q2 was roughly cash neutral); Saab remains confident in delivering positive cash flow for the year and progressing toward its medium-term targets (~22% organic CAGR 2023–2027, EBIT growth > sales growth, and cash conversion >60%). S&P reaffirmed Saab’s BBB+ rating. Management highlighted supply-chain resilience and selective investments as key near-term priorities to support higher production rates (e.g., GlobalEye capacity target moving toward ~4–6 aircraft/year by 2030).