In a significant announcement for the defense industry, Swedish defense contractor Saab has revised its sales and profit forecasts upward. This decision comes on the back of impressive Q4 2024 financial results and a broader global trend of increasing military spending. CEO Micael Johansson emphasized that even if peace were to emerge between Russia and Ukraine, nations would continue to invest heavily in defense.
Strong financial results
Saab reported solid earnings for Q4 2024, with a profit of 1.95 billion SEK (around € 170 million), up from last year but slightly below forecasts. Revenue grew significantly to 20.9 billion SEK (~ € 1.82 billion), highlighting the company’s strong market position. While new orders fell, the overall backlog increased by 24%, reaching 187 billion SEK (~€ 16.3 billion).
Future outlook and the impact of global military spending
Amid shifting geopolitical landscapes and evolving defense needs, Saab is betting on continued global investments in defense capabilities. CEO Micael Johansson remarked on the necessity for ongoing development:
“We must build up new capabilities, so this will need to continue,” he said.
Even as uncertainty looms regarding the potential end of the Ukraine conflict, Johansson remains steadfast in his outlook. He further explained:
“One must be able to defend oneself and have a deterrent effect. So, I believe the market growth will continue”.
These direct quotes underscore the belief that nations will persist in bolstering their defense systems to ensure deterrence and security. The emphasis on building new capabilities reflects the broader trend of rising military expenditures—a trend being observed both locally and internationally.
