Sweden’s Saab has indicated that its total sales for the year 2024 are projected to reach around Skr63.8bn ($5.72bn), marking an organic growth of 23.4%.
This figure exceeds the previously forecasted range of 15-20% for the same period.
In its latest financial update, the company attributes this surge in organic growth to robust sales performance and project delivery during the final quarter.
Sales for the fourth quarter (Q4) alone are expected to reach around Skr20.9bn, with an organic growth rate of 29.3%.
Additionally, Saab’s operating income for Q4 is also expected to rise to Skr2bn, up from Skr1.4bn, with an operating margin of 9.4%.
The anticipated operational cash flow for this period is projected to be Skr3.6bn.
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By GlobalDataSaab states that: “With the exception of the higher-than-expected sales growth for the full year, we reiterate the outlook for 2024 of an operating income growth higher than the sales growth and positive operational cash flow.
“All numbers in this release are preliminary and unaudited.”
In October, Saab reported third-quarter net income increased to Skr972m compared to the previous year, with earnings per share at Skr1.79.
This growth was supported by a 17% organic increase and sales reaching Skr13.54bn across all business areas.
At that time, Saab president and CEO Micael Johansson said that the surge in demand from European countries to restore their military inventories is expected to persist over an extended period.
He said that to address this requirement, the company is enhancing its production capabilities through investments in new facilities, incorporating automation into its manufacturing processes, and establishing additional plants.
Saab specialises in the design, manufacturing, and maintenance of advanced systems across aeronautics, weapons, command and control, sensors, and underwater systems.
The latest announcement follows the approximately $48m contract with BAE Systems in December 2024, under which Saab will supply the US Air Forces in Europe with Giraffe 4A radar systems.
