Despite market challenges, Saab‘s performance in Q1 shows its potential for expansion, as CEO Micael Johansson highlighted.
Saab, the Swedish aerospace and defence company, unveiled its financial results for the first quarter of 2024, showcasing progress in various metrics. With a 9% increase in order bookings totalling USD $16.94m (Skr 18,495m) and sales reaching Skr 14,185m, Saab demonstrated growth momentum driven by a surge in medium-sized orders. Notably, the organic sales growth stood at 24%, with all business areas and Combitech registering positive contributions, especially Aeronautics and Surveillance.
In recent months, Saab has made strides in its global expansion and military capabilities across multiple fronts. First, Saab commenced construction on its inaugural defence production facility in India, concurrently securing a deal with Poland for the delivery of Carl-Gustaf M4 systems.
Simultaneously, Saab collaborated with Damen Shipyards to export advanced Expeditionary C-71 submarines, eyeing Canada for further prospects. Additionally, Saab reinforced the UAE’s defence capabilities by delivering its fourth GlobalEye aircraft.
The company’s earnings before interest and taxes (EBIT) surged by 28%, amounting to Skr1,191m, while the EBIT margin improved to 8.4%, reflecting the strong sales performance. Net income also saw a notable improvement, reaching Skr 784m, alongside an increase in earnings per share to Skr 5.71. Despite operational cash flow dipping to Skr -1,998m due to heightened investment and inventory levels, Saab maintained a solid net liquidity position of Skr 0.8bn by the end of the period.
One of the most significant announcements was the upgraded sales outlook 2024, with organic sales growth now projected to be between 15-20%, compared to the previous outlook of 12-16%. This upward revision shows Saab’s confidence in its growth trajectory and market positioning, as elucidated by president and CEO Micael Johansson.
“Saab started 2024 by delivering increased order intake, strong sales growth, and improved profitability. I am satisfied with the progress we made in the quarter on capacity-related investments and recruitments. Supported by better visibility on deliveries and timing of capacity increases, we now upgrade our outlook for the full year on organic sales growth.” stated Johansson.
Moreover, Saab’s commitment to sustainability was reaffirmed through its CO₂e emission reduction initiatives, showcasing a 1.5% decrease in emissions compared to 2023. Additionally, the company’s order backlog stood at Skr 158bn as of March 31, 2024, reflecting a foundation for future growth and stability.
With an optimistic outlook for the rest of the year, Saab remains hopeful in capitalising on emerging opportunities in the aerospace and defence sectors, solidifying its position as a player in the global market.
