Sweden's Saab Q3 sales rise 31% on contract wins

Overview

• Sweden defence firm's Q3 sales rose 30.6% yr/yr, beating analyst expectations

• Company secured major orders for Gripen, GlobalEye and German frigate systems

Outlook

• Saab says strong order backlog and programme progress position it for continued growth

• Company sees growing customer demand reflected in recent major contract awards

Result Drivers

• MAJOR CONTRACT AWARDS - Co said Q3 results were driven by large orders for Gripen E, GlobalEye and German frigate systems

• ORGANIC SALES GROWTH - Co reported 30.6% organic sales growth in Q3

• HIGHER CASH FLOW - Co said operational cash flow increased sharply in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy."

• Wall Street's median 12-month price target for Saab AB is SEK630.00, about 0.8% below its October 22 closing price of SEK634.90

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

• Oct 20 - Aerospace and military contractors raise 2026 profit forecasts

• Oct 22 - Lockheed lands Pentagon deal for 850 F-35 jets, lifts annual forecast

• Oct 22 - Norway's Kitron Q3 revenue beats estimates on defence demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)