Market AnalysisJul 17, 20262 Min

Defence company Saab springs a surprise with Q2 numbers: Key takeaways

Swedish defence and security company Saab sprung a surprise on Friday, recording solid growth in the second quarter as demand for military equipment grows amid escalating geopolitical tensions.

The fighter jet maker is reaping the benefit of an increase in defence spending by European governments, especially after Russia’s invasion of Ukraine.

Europe’s defence budgets have also expanded on US President Donald Trump’s repeated warnings over the year that the region couldn’t keep relying on the US to defend it.

Consequently, NATO members agreed to work toward spending 5% of gross domestic product (GDP) on defence by 2035, helping companies like Saab.

Saab’s Q2 performance

The company’s sales amounted to 25.5 billion Swedish crowns in the June 2026 quarter, which translated into an organic sales growth of 29.8% year-on-year.

Operating profit, or earnings before interest, tax, depreciation or amortisation (EBITDA), amounted to 3.8 billion Swedish crowns during the quarter. Ebitda margin came in at a solid 14.8%.

Ebit increased a whopping 41% year-on-year to 2.8 billion Swedish crowns in the second quarter, with EBIT margin of 11%.

Saab’s net income increased to 2.2 billion Swedish crowns, while Q2 earnings per share (EPS) amounted to 3.96 Swedish crowns.

Record order backlog

The defence company has seen another quarter of record orders backlog in the three months ended June 2026. Order bookings amounted to 68.4 billion Swedish crowns during the quarter. The 47-billion Swedish crowns order for submarines to Poland was booked during the quarter.

This marks the fifth consecutive quarter of order book growth for Saab. Total backlog amounted to 317.7 billion Swedish crowns, up 61% from 197.6 billion a year ago.

Management commentary

Saab’s president and CEO Micael Johansson said: “We delivered a strong second quarter with increased order bookings, high organic sales growth and a strengthened operating margin. Demand for our product offering remains high as customers invest in both immediate and long-term needs.”

“With continued capacity expansion, high delivery volumes and focus on technological innovation, we are well positioned to meet market demand,” he added.

To recall, earlier this week, Saab announced that it has secured a contract with German naval defense company TKMS to supply combat systems, composite structures and sensors for four MEKO A-200 DEU class frigates for the German Navy. The deal was valued at approximately 8.7 billion Swedish crowns.