Saab Expands Production Amid Rising Defense Demand but Faces Cash Flow Pressure

Saab is accelerating investments to expand production capacity as global military spending remains strong, driven by Russia’s invasion of Ukraine and Middle East security concerns. The company expects high demand for its Gripen E fighter jets, ground combat systems, missile technology, and surveillance products. However, increased investments will strain cash flow, prompting Saab to lower its cumulative cash conversion target for 2023-2027 from 70% to at least 60%. Despite a 44% drop in Q4 2024 order bookings to 17.56 billion kronor ($1.61 billion), sales rose 29% to 20.85 billion kronor, with net profit up 17% to 1.44 billion kronor. Saab raised its organic sales growth target to 18% from 15% for 2023-2027 and expects 12-16% growth in 2025, while also increasing its dividend to 2.00 kronor per share.

Original news