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Saab AB (SE:SAAB.B)
:SAAB.B

Saab AB (SAAB.B) AI Stock Analysis

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SE:SAAB.B

Saab AB

(SAAB.B)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
kr518.00
▲(0.97% Upside)
Saab AB's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and a substantial order backlog. However, technical analysis indicates bearish momentum, and the stock appears overvalued, which tempers the overall score.
Positive Factors
Strong Order Backlog
A substantial order backlog provides revenue visibility and stability, supporting future growth and enhancing the company's market position.
Revenue Growth
Consistent revenue growth indicates strong demand for Saab's products and services, reinforcing its competitive position in the aerospace and defense industry.
Upgraded Growth Outlook
An upgraded growth outlook reflects confidence in future performance, driven by strong market demand and strategic initiatives.
Negative Factors
Negative Cash Flow
Negative cash flow can limit the company's ability to invest in growth opportunities and may require external financing, impacting financial flexibility.
T-7 Program Challenges
Challenges in the T-7 program could strain resources and delay profitability improvements, affecting overall financial performance.
Supply Chain Risks
Supply chain constraints, particularly for critical materials, could hinder production capabilities and delay project deliveries.

Saab AB (SAAB.B) vs. iShares MSCI Sweden ETF (EWD)

Saab AB Business Overview & Revenue Model

Company DescriptionSaab AB is a Swedish aerospace and defense company that specializes in the development of advanced technology solutions for military and civil markets. The company operates in various sectors including defense, aerospace, and security, focusing on products and services such as fighter aircraft, submarines, radar systems, and cyber security solutions. Saab is known for its innovative approach and commitment to enhancing safety and security through high-tech solutions.
How the Company Makes MoneySaab AB generates revenue through multiple streams primarily from defense contracts, which include the sale of military aircraft, naval systems, and advanced weaponry. Additionally, the company earns income from providing maintenance, repair, and overhaul services for defense systems and equipment. Another significant revenue source is the development and delivery of civil aviation solutions and surveillance systems. Saab's partnerships with various governments and defense agencies, as well as collaboration with other defense contractors, are crucial for securing contracts and funding. The company's involvement in research and development projects, often supported by grants or joint ventures, also contributes to its earnings, particularly in emerging technology areas like cyber defense and autonomous systems.

Saab AB Earnings Call Summary

Earnings Call Date:Oct 24, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong Q3 performance with record-breaking growth in several segments, a substantial order backlog, and upgraded growth outlook for 2025. However, challenges remain in the Aeronautics segment and cash flow, alongside ongoing supply chain risks. Overall, the highlights significantly outweigh the lowlights, reflecting a positive sentiment.
Q3-2025 Updates
Positive Updates
Strong Order Intake
SEK 21 billion in order intake for Q3, with an additional SEK 16 billion in October, indicating a strong demand and a promising start for Q4.
Organic Growth and Revenue Increase
21% organic growth for the first 9 months of 2025, with a record-breaking quarter in terms of sales and EBIT figures.
Upgraded 2025 Outlook
Guidance for top line growth increased to 20% to 24%, up from 16% to 20%.
Dynamics Segment Growth
Dynamics segment grew by 36% over the first 9 months, driven by strong demand and large orders, including from the Czech Republic.
Surveillance and Aeronautics Performance
Surveillance grew by 8% and Aeronautics by 34% in Q3, with strong project execution and high demand for products like GlobalEye.
Substantial Backlog
Order backlog increased to SEK 202 billion, with 73% being international orders, supporting future growth.
Sustainability Achievements
4% reduction in CO2 emissions year-over-year and ongoing progress in diversity and inclusion initiatives.
New Strategic Appointment
Marcus Wandt appointed to a new role overseeing strategy and technology, highlighting Saab's focus on technological advancement.
Negative Updates
T-7 Program Challenges
The Aeronautics segment is still impacted by startup costs associated with the T-7 program, affecting profitability.
Negative Cash Flow
Despite strong operational cash flow, increased investments have resulted in a negative cash flow year-to-date.
Civil Business Impact on Surveillance Margins
Negative impact from the civil business segment affecting Surveillance EBIT margins.
Risk of Supply Chain Constraints
Need to invest in supply chain and address potential rare earth element supply issues, which could affect future growth.
Company Guidance
During Saab's Q3 2025 call, the company provided updated guidance, raising its expected growth rate for 2025 from 16-20% to 20-24% due to strong performance and a robust order backlog of SEK 202 billion. The company reported a 21% organic growth for the first nine months and an EBIT margin of 9.3%. Saab highlighted significant demand in its markets, particularly noting SEK 16 billion in order intake post-quarter close, and strong interest in its Gripen and GlobalEye systems. Aeronautics saw a 34% growth, bolstered by Gripen deliveries, while Dynamics experienced a 36% increase over nine months, driven by strong demand for its defense systems. CEO Micael Johansson also discussed the potential expansion of Gripen production capacity in response to anticipated contracts, including a notable interest from Ukraine. The company maintained its outlook for positive cash flow by year-end, supported by expected large customer payments, while continuing to invest in R&D and capacity expansion to meet market demand.

Saab AB Financial Statement Overview

Summary
Saab AB's financial performance is robust, with strong revenue growth and improving profitability. The balance sheet is well-managed with a healthy leverage position, and cash flow metrics indicate strong liquidity and cash management. The company is well-positioned for continued growth, though maintaining careful debt management will be crucial for sustained financial health.
Income Statement
85
Very Positive
Saab AB demonstrates strong revenue growth with a 7.06% increase in TTM, supported by a consistent gross profit margin around 21-22%. The net profit margin has improved to 7.43% in TTM, indicating enhanced profitability. EBIT and EBITDA margins show stability, reflecting efficient cost management. Overall, the income statement reflects robust growth and profitability trends.
Balance Sheet
78
Positive
The balance sheet shows a healthy debt-to-equity ratio of 0.25 in TTM, indicating prudent leverage management. Return on equity has improved to 13.96%, showcasing effective use of equity to generate profits. The equity ratio remains stable, suggesting a solid capital structure. However, the company should monitor debt levels to maintain financial stability.
Cash Flow
70
Positive
Saab AB's cash flow statement reveals a strong free cash flow growth of 29.79% in TTM, highlighting effective cash management. The operating cash flow to net income ratio is 0.21, indicating good cash conversion. The free cash flow to net income ratio of 0.46 suggests efficient cash generation relative to profits. Overall, cash flow metrics reflect strong liquidity and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue72.30B63.75B51.61B42.01B39.15B35.43B
Gross Profit15.90B13.66B11.26B8.89B8.21B5.68B
EBITDA7.89B8.49B7.36B4.84B4.35B2.75B
Net Income5.19B4.17B3.38B2.19B1.93B1.07B
Balance Sheet
Total Assets108.97B99.82B82.76B72.36B65.04B60.57B
Cash, Cash Equivalents and Short-Term Investments8.93B11.74B13.47B12.86B11.84B10.38B
Total Debt13.05B10.38B10.04B9.99B9.72B10.00B
Total Liabilities67.74B64.01B50.40B42.49B41.79B38.92B
Stockholders Equity40.89B35.50B32.03B29.49B22.98B21.47B
Cash Flow
Free Cash Flow2.32B1.89B2.92B2.34B3.19B2.91B
Operating Cash Flow8.64B6.73B6.46B4.65B5.71B5.80B
Investing Cash Flow-9.22B-4.18B-5.92B-2.44B-4.70B-4.00B
Financing Cash Flow88.00M-1.93B-1.23B-1.18B-1.64B-1.13B

Saab AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price513.00
Price Trends
50DMA
499.32
Positive
100DMA
515.32
Negative
200DMA
485.62
Positive
Market Momentum
MACD
1.73
Negative
RSI
56.10
Neutral
STOCH
82.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SAAB.B, the sentiment is Positive. The current price of 513 is above the 20-day moving average (MA) of 489.54, above the 50-day MA of 499.32, and above the 200-day MA of 485.62, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 82.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SAAB.B.

Saab AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
kr462.00M26.8635.19%1.22%34.25%57.77%
70
Outperform
kr272.07B52.5313.56%0.39%22.49%30.47%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
kr2.45B42.832.74%-3.14%-35.70%
59
Neutral
kr569.42M-24.56-3.61%30.82%57.74%
48
Neutral
€2.64B-24.929.60%40.86%
42
Neutral
kr5.72B-26.22-16.38%0.41%47.87%-439.87%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SAAB.B
Saab AB
513.00
278.84
119.08%
SE:AAC
AAC Clyde Space
92.00
44.75
94.71%
SE:AVT.B
AVTECH Sweden AB
8.18
2.58
46.15%
SE:MILDEF
MilDef Group AB
122.50
3.34
2.81%
SE:GOMX
GomSpace Group AB
15.38
10.90
243.30%
SE:CTT
CTT Systems AB
195.00
-74.75
-27.71%

Saab AB Corporate Events

Saab Secures Contract with Spanish Army for Advanced Training Systems
Dec 2, 2025

Saab has secured a contract with the Spanish Army to supply Individual Duel Simulation systems, marking the first order under a framework agreement potentially worth EUR 34 million. This collaboration, involving local partner Tecnobit, will establish Saab’s live training systems in Spain, enhancing the Spanish Army’s training capabilities with advanced, realistic, and interoperable systems to prepare for modern warfare challenges.

Saab Secures Third MSHORAD Order from Lithuania
Dec 1, 2025

Saab has secured a third order from the Lithuanian Defence Materiel Agency for its Mobile Short Range Air Defence (MSHORAD) system, valued at approximately SEK 1.4 billion, with deliveries scheduled between 2026 and 2030. This order enhances Saab’s position in the defence industry by reinforcing its role in providing advanced mobile air defence solutions, which are crucial for protecting moving units against aerial threats, thereby strengthening Lithuania’s national security.

Saab Secures SEK 2.1 Billion Swedish Defence Order
Nov 25, 2025

Saab has secured a significant order from the Swedish Defence Materiel Administration worth approximately SEK 2.1 billion for the delivery of sensors and command-and-control systems for a ground-based air defence solution for brigades. This contract, set for delivery between 2027 and 2028, aims to enhance Sweden’s air defence capabilities with a highly mobile short-range system, integrating the Giraffe 1X radar and other components. This development strengthens Saab’s position in the defence industry, showcasing its technological prowess in providing advanced defence solutions, and is expected to bolster Sweden’s ability to detect and engage airborne threats effectively.

Saab Secures EUR 3.1 Billion Contract with Colombia for Gripen Fighter Jets
Nov 14, 2025

Saab has secured a EUR 3.1 billion contract with the Colombian Government to supply 17 Gripen E/F fighter aircraft, with deliveries scheduled from 2026 to 2032. This deal includes a comprehensive industrial cooperation package aimed at benefiting Colombia in various sectors, marking the start of a significant partnership to enhance Colombia’s defence capabilities and innovation potential.

Saab Secures EUR 549 Million Orders for Arexis EW System for German Eurofighters
Nov 14, 2025

Saab has secured two significant orders from Airbus Defence and Space to supply the Arexis Electronic Warfare sensor suite for German Eurofighters, totaling approximately EUR 549 million. This development strengthens Swedish-German defense collaboration and enhances the Eurofighter’s capabilities, marking a strategic advancement in Saab’s operations and market positioning.

Saab Secures Major Carl-Gustaf M4 Contract with Denmark
Nov 12, 2025

Saab has secured a SEK 510 million contract with the Danish Ministry of Defence for the delivery of Carl-Gustaf M4 weapons, ammunition, and training equipment, with deliveries scheduled from 2026 to 2028. This order reinforces Saab’s long-standing relationship with the Danish Armed Forces and highlights the Carl-Gustaf M4’s adaptability and precision, enhancing Denmark’s defense capabilities against evolving threats.

Saab Secures $46 Million U.S. Army Contract for Giraffe 1X Radars
Oct 28, 2025

Saab has secured a $46 million contract from the U.S. Army to supply Giraffe 1X radars, emphasizing the increasing demand for advanced radar technology to bolster air defense and counter-unmanned aerial systems capabilities globally. The Giraffe 1X offers a compact, mobile design with real-time air surveillance, providing the U.S. Army and its partners with a significant operational advantage in addressing emerging threats.

Saab AB Reports Strong Q3 2025 Performance and Upgrades Outlook
Oct 24, 2025

Saab AB reported strong financial performance in the third quarter of 2025, with significant growth in sales and order bookings. The company upgraded its outlook for the year, expecting organic sales growth to reach 20-24%, driven by robust performance in its aeronautics division. This growth underscores Saab’s strengthened market position and its commitment to expanding its capabilities and offerings in the defense sector.

Saab Appoints Marcus Wandt to Lead New Strategy and Technology Group
Oct 24, 2025

Saab has appointed Marcus Wandt as Senior Vice President and head of the new Group Strategy and Technology function, effective November 1, 2025. This strategic move aims to enhance Saab’s focus on technology and innovation, mergers and acquisitions, and partnerships, reinforcing its position in the defence and security industry. Wandt’s extensive experience as a Swedish Air Force fighter pilot and former Chief Test Pilot at Saab, along with his role as an astronaut, underscores his capability to lead this new initiative.

Saab Proposes Revisions to Long-term Incentive Program 2026
Oct 23, 2025

Saab AB’s Board of Directors has proposed revisions to its Long-term Incentive Program 2026, aiming to enhance its ability to attract and retain senior leaders by offering competitive remuneration aligned with market standards. The changes, subject to approval at the Annual General Meeting 2026, include adjustments to the Performance Share Plan and Special Projects Incentive, increasing the number of participants and aligning executive interests with shareholder value, which could positively impact Saab’s operational effectiveness and stakeholder alignment.

Saab Secures SEK 2.6 Billion Order for Future Fighter Studies
Oct 14, 2025

Saab has secured a SEK 2.6 billion order from the Swedish Defence Materiel Administration for continued studies on future fighter systems, focusing on both manned and unmanned solutions. This contract, running from 2025 to 2027, extends a previous agreement and involves collaboration with various Swedish defense entities and industry partners, reinforcing Saab’s role in developing innovative solutions for the Swedish Armed Forces.

Saab Secures SEK 9.6 Billion Order for Swedish A26 Submarines
Oct 13, 2025

Saab has secured an order worth approximately SEK 9.6 billion from the Swedish Defence Materiel Administration for the final production phase and additional materials and services for two Blekinge-class (A26) submarines. This development underscores Saab’s role in enhancing Sweden’s underwater capabilities and maintaining national security, with the majority of deliveries expected between 2026 and 2032.

Saab Secures SEK 4 Billion Gripen Maintenance Contract Extension
Oct 10, 2025

Saab has extended its contract with the Swedish Armed Forces for the maintenance and support of Gripen C/D and E aircraft, valued at approximately SEK 4 billion, with deliveries scheduled from 2026 to 2027. This extension ensures high availability and readiness for the Swedish Air Force, with options for additional orders until 2029, reinforcing Saab’s position in the defence industry.

Saab AB to Present Q3 2025 Interim Report
Oct 10, 2025

Saab AB has announced the presentation of its Q3 2025 interim report, which will be led by CEO Micael Johansson and CFO Anna Wijkander. The report will be available on October 24, 2025, and stakeholders can participate via a live webcast or conference call, allowing for interactive engagement through questions. This event underscores Saab’s commitment to transparency and stakeholder engagement in its financial operations.

Saab AB Announces 2026 AGM Nomination Committee
Oct 1, 2025

Saab AB has announced the appointment of its Nomination Committee for the 2026 Annual General Meeting, reflecting the shareholder structure as of August 2025. The committee, representing 49% of Saab’s voting rights, will propose key appointments and remuneration for the meeting scheduled in April 2026. This development underscores Saab’s structured approach to governance and stakeholder engagement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 27, 2025