• Revenue: SEK 15.8 billion, marking the best first quarter ever.
• Order Backlog: SEK 189 billion, a 19% increase year-over-year.
• Sales Growth: 11.3% overall growth, with 10.9% organic growth.
• EBIT Margin: Improved from 8.4% to 9.2% year-over-year.
• Net Income: EPS improved by 64% to SEK 2.35 from SEK 1.43.
• Cash Flow: Improved from minus SEK 2 billion to minus SEK 14 million.
• Net Liquidity Position: Maintained a positive net position with SEK 12.7 billion in liquid investments.
• Dividend: Increased to SEK 2 per share, totaling SEK 1 billion.
• Employee Growth: Net increase of 800 employees.
• International Sales: 74% of order backlog from international customers.
• Business Area Performance: Dynamics and Surveillance represent 72% of total order backlog.
• Environmental Impact: 31% reduction in greenhouse emissions since 2020.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Saab AB (SAABF) reported a strong order intake with significant orders from Latvia and Germany, contributing to a growing order backlog.
• All business areas experienced growth, with Dynamics and Surveillance showing particularly high order intake, representing 72% of the total order backlog.
• The company achieved its highest first-quarter sales ever, with a 4% increase compared to the previous year, driven by organic growth.
• Profitability improved across all business areas, with a notable EBIT margin increase from 8.4% to 9.2%.
• Saab AB (SAABF) is expanding its production capacity globally, including new facilities in the US, India, UK, and Finland, to meet increasing demand.

Negative Points

• The order backlog for Saab Kockums decreased by 21%, raising concerns about sustaining sales growth in this segment.
• The civilian side of the Surveillance business impacted sales and profitability negatively, indicating challenges in this area.
• Cash flow, while improved, remains variable across business areas, with some areas not benefiting from favorable customer payment timings.
• The geopolitical situation and potential trade wars pose uncertainties that could impact future business operations.
• The process of converting political defense spending commitments into actual contracts is slow, potentially delaying revenue realization.

Q & A Highlights

Q: How does Saab view its ability to maintain its share of the Swedish defense budget given the focus on strengthening ground capabilities? A: Micael Johansson, President and CEO, stated that Saab is well-positioned to continue being a significant part of the Swedish defense spending, historically averaging around 40% of the procurement budget. Saab offers a wide range of capabilities in the land domain, including sensor capabilities, command and control, missiles, and support weapons, which should support its position.

Q: What drove the strength in Kockums this quarter, and what is the outlook for orders given the shrinking order backlog? A: Micael Johansson explained that the growth in Saab Kockums is due to a good mix of Swedish and international contracts, particularly on the surface side and unmanned underwater vehicles. The focus is on maintaining a balance of support business, development, and production, which has been successful recently.

Q: Is it possible to certify Gripen for nuclear weapons, and what is the outlook for order backlog growth? A: Micael Johansson stated there are no current intentions or initiatives to certify Gripen for nuclear weapons, and it remains a speculative and political question. Anna Wijkander, CFO, reiterated the company's growth target of 18% from 2023 to 2027, emphasizing a strong backlog to support this growth.

Q: Can you provide an update on the potential timing for signing Gripen deals with Thailand and Colombia? A: Micael Johansson mentioned that negotiations with Thailand are further along, with an aim to finalize contracts this year. The process with Colombia is also underway, with the objective to complete it within the year. He clarified that financing schemes allow Colombia to defer payments, but Saab will be paid upon delivery.

Q: How quickly will the increase in Swedish defense spending translate into higher sales, and what is Saab's approach to capacity expansion? A: Micael Johansson noted that the recent announcement of increased defense spending has not yet impacted Q1 results. The effects will become clearer mid-year when budget discussions for 2026 occur. Saab remains forward-leaning in capacity expansion, particularly in Dynamics, to meet high demand.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.