Saab Q1 operating profit rises more than expected (updated)
23/04/2026 06:47
Adds detail, background and CEO quotes, paragraphs 3-8 Saab on track to meet medium-term targets All business areas achieve double-digit sales growth Order backlog SEK 274 billion By Johan Ahlander STOCKHOLM, April 23 (Reuters) - Swedish aerospace and defence group Saab SAABb.ST reported a larger than expected rise in first-quarter operating profit on Thursday and said it was on track to deliver on medium-term targets. Saab, which makes products ranging from Gripen fighter jets and submarines to missiles and advanced electronics, reported a 32% rise in first-quarter operating profit to 1.92 billion Swedish crowns ($208 million), beating expectations of 1.71 billion crowns in an LSEG poll of analysts. The group is scaling up production to meet demand from Europe and beyond as Russia's invasion of Ukraine and conflict in the Middle East drive a continued rise in arms expenditure. "It's full speed ahead," CEO Micael Johansson told Reuters. "There's a lot of activity in the market and we have a lot in the pipeline." All business areas delivered sales growth in double-digit percentages and the company is on course to meet the medium-term targets, he added. Saab's medium-term targets for 2023-2027 project organic sales growth of about 22%, operating income growth above sales growth and a cash conversion ratio of more than 60%. Sales amounted to 19.16 billion crowns, up from 15.79 billion crowns in the first quarter of 2025. That equated to organic sales growth of 23.6%, just shy of the estimated 19.82 billion crowns. Johansson said Saab's supply chains have not yet been affected by the war in Iran but there has been high demand from the Gulf region for its missile and drone detecting sensors. Order bookings amounted to 18.24 billion crowns in the quarter and the backlog stood at 274 billion crowns. ($1 = 9.2357 Swedish crowns) (Reporting by Johan Ahlander Editing by Essi Lehto and David Goodman ) ((johan.ahlander@thomsonreuters.com; +46 707 211027;))