TLDR
- Saab stock rose 5% to SEK 542.5 after Q2 results beat expectations across all key metrics.
- Order intake more than doubled to SEK 68.4 billion, boosted by a SEK 47 billion Polish submarine contract.
- Revenue jumped 29% to SEK 25.45 billion, with 29.8% organic sales growth.
- EBIT rose 41% to SEK 2.79 billion, pushing the operating margin to 11.0% from 10.0%.
- Morgan Stanley called the quarter “very strong across all metrics” and said the earnings upgrade cycle has further to run.
Saab stock jumped 5.0% to SEK 542.5 on Friday, outperforming the OMX Stockholm All Share Cap GI, which fell 0.3% on the day.
The move came after the Swedish defense group posted a strong set of second-quarter numbers, with earnings, revenue and order intake all coming in well above year-ago levels.
Net income rose to SEK 2.17 billion from SEK 1.54 billion a year earlier. Earnings per share climbed to SEK 3.96 from SEK 2.83.
Revenue increased 29% to SEK 25.45 billion, up from SEK 19.79 billion in Q2 last year. Organic sales growth came in at 29.8%.
EBIT rose 41% to SEK 2.79 billion, lifting the operating margin to 11.0% from 10.0% in the prior-year period. EBITDA climbed to SEK 3.77 billion, with the EBITDA margin improving to 14.8% from 14.3%.
The headline number from the quarter was order intake. Bookings more than doubled to SEK 68.4 billion from SEK 28.4 billion a year earlier.
That surge was driven largely by a SEK 47 billion submarine contract from Poland — one of the largest single orders in Saab’s history.
Morgan Stanley Flags Strong Momentum
Morgan Stanley said the quarter was “very strong across all metrics,” pointing to record order intake and better-than-expected profitability as key takeaways.
The bank also noted that recently announced contracts — including a Gripen fighter jet order from Ukraine and a German frigate deal — are expected to be booked in the third quarter, giving further visibility into the pipeline.
Morgan Stanley said these deals reinforce its view that the earnings upgrade cycle still has room to run.
Chief Executive Micael Johansson said demand for Saab’s products remains high, with customers investing in both immediate and longer-term defense capabilities.
He pointed to ongoing capacity expansion and continued investment in new technology as key drivers supporting delivery growth.
New Naval Business Area Takes Shape
Saab recently established a dedicated Naval business area, which the company says positions it to capture growing demand for maritime defense systems across Europe and internationally.
The move reflects Saab’s push to broaden its product base beyond its well-known air and land defense platforms.
The Polish submarine contract is the first major win tied to this expanded naval focus, and management says the pipeline for similar programs remains active.
Production ramp-ups across the wider business are converting elevated defense budgets into higher-margin deliveries, a dynamic that drove the margin expansion seen in Q2.
Saab’s Q2 earnings per share came in at SEK 3.96, up from SEK 2.83 in the same quarter last year.
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