Saab, the Swedish defence and security company, has reported a strong Q1 2023 with a total order intake of Skr17bn ($16.4bn) marking a 110% increase from Q1 2022.
The company has received significant orders from UAE and Sweden for the fourth GlobalEye aircraft.
The Q1 highlights have been spearheaded by the increase in defence spending in Europe and the US, as countries seek to replenish their stocks, which has contributed to Saab’s growth.
International orders amounted to Skr13.9bn, a 224% increase, with 81% of all order bookings outside of Sweden for Q1 2023. The order backlog is Skr133bn, with a focus to deliver on this backlog as countries around the world require the military equipment urgently.
Major contracts included the Carl-Gustaf order from a Western country, Gripen C/D support to Sweden, NLAW to Finland, and Carl-Gustaf ammunition to Lithuania.
Sales amounted to Skr11.5bn with an organic growth of 23%, driven by most business areas. A strong Q1 from high delivery volumes and good pace in projects, with an aim to grow in Saab’s strategic markets such as the US, UK, Germany, and Australia.
In the Aeronautics sector, Saab has extended its Gripen contract with Hungary and potential orders from the Czech Republic, Colombia, and the Philippines, with discussions ongoing.
The dual-seater version of the Gripen for Brazil is in the final stage of sub-assembly with delivery expected in early 2025, with the MoU with Embraer helping to deepen the aerospace collaboration.
Dynamics had a 50% increase in sales from Q1 2022, with Skr9.6bn in sales for Q1 2023. Orders for the Carl-Gustaf, NLAW, and RS 70 NG have driven this.
Within Surveillance, orders have been captured within the naval domain in Australia, following their defence review where they are seeking new naval capabilities.
Saab’s strong Q1 performance highlights the company’s ability to capitalise on the growing demand for military equipment worldwide, driven by the increasing defence spending in Europe and the US. Saab is well-positioned to continue to grow and expand its business in its strategic markets.
Saab’s priorities going forward include the focus on delivery commitments, market opportunities and NATO defence capability needs.