Saab AB (($SE:SAAB.B)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Saab AB’s recent earnings call for Q3 2025 reflected a positive sentiment, showcasing a robust performance across various segments. The company reported record-breaking growth and a substantial order backlog, which has led to an upgraded growth outlook for 2025. Despite some challenges in the Aeronautics segment and cash flow concerns, the overall highlights significantly outweighed the lowlights, indicating a strong position moving forward.
Strong Order Intake
Saab AB reported an impressive SEK 21 billion in order intake for Q3, with an additional SEK 16 billion in October. This surge in orders indicates a strong demand for Saab’s offerings and sets a promising tone for the beginning of Q4.
Organic Growth and Revenue Increase
The company achieved a remarkable 21% organic growth for the first nine months of 2025, marking a record-breaking quarter in terms of sales and EBIT figures. This growth underscores Saab’s ability to capitalize on market opportunities and drive revenue.
Upgraded 2025 Outlook
Saab has raised its guidance for top-line growth in 2025 to a range of 20% to 24%, up from the previous 16% to 20%. This upgrade reflects the company’s confidence in sustaining its strong performance and capitalizing on its substantial order backlog.
Dynamics Segment Growth
The Dynamics segment experienced a 36% growth over the first nine months, fueled by strong demand and significant orders, including those from the Czech Republic. This segment’s performance highlights Saab’s strength in defense systems.
Surveillance and Aeronautics Performance
Surveillance grew by 8% and Aeronautics by 34% in Q3, driven by strong project execution and high demand for products like GlobalEye. These figures underscore the success of Saab’s strategic initiatives in these areas.
Substantial Backlog
Saab’s order backlog increased to SEK 202 billion, with 73% of these orders being international. This substantial backlog supports future growth and reflects the global demand for Saab’s products.
Sustainability Achievements
The company reported a 4% reduction in CO2 emissions year-over-year and ongoing progress in diversity and inclusion initiatives, highlighting its commitment to sustainability and corporate responsibility.
New Strategic Appointment
Marcus Wandt’s appointment to oversee strategy and technology underscores Saab’s focus on technological advancement and strategic growth.
T-7 Program Challenges
The Aeronautics segment continues to face challenges due to startup costs associated with the T-7 program, impacting profitability. Addressing these challenges will be crucial for future success.
Negative Cash Flow
Despite strong operational cash flow, increased investments have resulted in a negative cash flow year-to-date. Saab aims to address this by year-end through expected large customer payments.
Civil Business Impact on Surveillance Margins
The civil business segment has negatively impacted Surveillance EBIT margins, highlighting the need for strategic adjustments to improve profitability.
Risk of Supply Chain Constraints
Saab identified the need to invest in supply chain improvements and address potential rare earth element supply issues, which could affect future growth.
Forward-Looking Guidance
During the Q3 2025 call, Saab provided updated guidance, raising its expected growth rate for 2025 from 16-20% to 20-24%. The company highlighted significant demand, particularly for its Gripen and GlobalEye systems, and discussed potential expansion of Gripen production capacity. Saab maintained its outlook for positive cash flow by year-end, supported by expected large customer payments and ongoing investments in R&D and capacity expansion.
In summary, Saab AB’s Q3 2025 earnings call reflected a positive sentiment with strong growth and a substantial order backlog. Despite some challenges, the company’s upgraded growth outlook and strategic initiatives position it well for future success. Investors and stakeholders can remain optimistic about Saab’s trajectory as it continues to capitalize on market opportunities and address operational challenges.