DonateMany a little makes a mickle – Saab with strong II/2025 by small and medium-sized contracts
Saab has reported strong results for the first half of 2025, further demonstrating its acceleration in growth and consolidation of its market leadership in the global defence sector. According to President and CEO Micael Johansson, the company is successfully strengthening its market position amid continued strong demand for its products and solutions. Saab’s ongoing investments to expand capacity are allowing it to address rising demands from defence customers around the world, all while maintaining impressive profitability.
In the second quarter of 2025, Saab recorded an order intake of SEK 28,403 million, with growth driven primarily by a surge in small and medium-sized contracts. Sales for the quarter climbed to SEK 19,786 million from SEK 15,170 million in the previous year, representing remarkable organic growth of 32 percent. All business units contributed to this revenue boost, but the Dynamics division was particularly noteworthy, achieving a striking quarterly sales increase of seventy-three percent. Operating performance was equally robust, as EBITDA reached SEK 2,831 million with an improved margin of 14.3 percent, up from 12.9 percent in Q2 2024. EBIT rose sharply as well, reaching SEK 1,977 million—a 49 percent jump over the previous year—yielding a margin of ten percent. This quarter also included a one-time gain of SEK 105 million related to Saab’s minority portfolio.
Saab’s net income for the period increased to SEK 1,536 million from SEK 1,012 million a year earlier, with earnings per share rising to SEK 2.83, a fifty-three percent surge. Operational cash flow stood at negative SEK 1,136 million, reflecting the company’s ongoing commitment to investing in increased production capacity and future growth. Nevertheless, Saab’s net liquidity position improved significantly, ending the period at SEK 690 million compared to negative SEK 2,354 million at the end of Q2 2024.
Strong outlook for an exceeding 2025
In recognition of this strong performance and the company’s positive market outlook, Saab has upgraded its guidance for the year. Organic sales growth is now anticipated to be between sixteen and twenty percent, a notable increase from the previously forecasted range of twelve to sixteen percent. The company also expects EBIT to expand at a pace exceeding the growth in sales, and continues to project positive operational cash flow for the full year.
Saab’s growth is underpinned by its wide-ranging and innovative portfolio. The company remains focused on delivering advanced defence and security solutions across several key areas. Its core business divisions include Aeronautics, which covers advanced fighters such as the Gripen and unmanned aerial vehicles; Dynamics, which provides ground combat systems, missile technologies, and training solutions; Surveillance, which delivers radar, sensors, and electronic warfare capabilities; Kockums, which focuses on state-of-the-art submarines and surface vessels; and Support and Services, ensuring long-term lifecycle support for defence platforms. Saab’s strategic priorities also include accelerating advances in autonomy, artificial intelligence in command and control, distributed sensing, and digital transformation. Recent years have seen a particular emphasis on expanding digital and data-centric solutions to support customers’ evolving needs.
“Multi-domestic” growth strategy – Firing on all cylinders
The past year has been marked by several significant developments for Saab. The company launched major capacity expansion initiatives, investing in automation and enhancing supply chain resilience to meet surging global demand. Saab has also pursued a “multi-domestic” growth strategy, deepening its presence in key international markets and forging new partnerships and acquisitions to strengthen its technological capabilities. The company’s workforce has grown in step with its ambitions, making it one of Sweden’s leading engineering employers and enabling Saab to deliver innovation at scale. In response to continued geopolitical tensions and increased defence spending worldwide, Saab has maintained a record order backlog, supporting its outlook for sustainable long-term growth. During its 2025 Capital Markets Day, Saab’s executive team reaffirmed the company’s growth strategy, revealing updated mid-term financial targets and an organic sales compound annual growth rate goal of around eighteen percent through 2027.
Saab’s results in the second quarter of 2025 reflect an organization firing on all cylinders, executing a clear, growth-focused strategy. With expanding sales and profit margins, a robust order pipeline, and major investments in both innovation and production capacity, Saab is well positioned to maintain its leadership in a defence sector that grows more strategically important by the day.
