Swedish Defense Company Saab Sees Orders Triple Following Major Fighter Jet Deal

2026-10-23 companies

Stockholm, Friday, 23 October 2026.
A landmark contract to supply fighter jets to Ukraine drove Swedish defense company Saab’s third-quarter 2026 orders to triple, pushing its operational cash flow to 6.8 billion kronor.

Breakdown of Third-Quarter Orders

The Swedish defense group recorded SEK 65,825 million in orders in the third quarter of 2026, representing a significant increase from SEK 20,861 million in the same period of the previous year [1][2]. This surge corresponds to a year-over-year growth rate calculated as 215.541 percent, driven primarily by three major contracts [1][3]. The largest single agreement involves the supply of 16 Gripen E fighter jets to Ukraine, valued at SEK 24.6 billion, which management describes as a first step in the long-term expansion of the country’s air capabilities [1][2]. Additionally, the company secured a SEK 10.1 billion order for two GlobalEye surveillance aircraft for an undisclosed customer, noted in some reports as a Middle Eastern client [1][3]. A third significant contract worth SEK 8.7 billion covers equipment for Germany’s new MEKO A-200-class frigates [1][2].

Revenue and Profit Margins

Quarterly revenue rose to SEK 20,553 million, compared to SEK 15,871 million in the prior year period, reflecting an organic sales growth of 30.6 percent [2][4]. This performance exceeded the FactSet consensus expectation of SEK 19,972 million [1]. Operating profit jumped 42 percent to SEK 1,945 million, surpassing the LSEG consensus of SEK 1,910 million [1][2]. The operating margin increased from 8.7 percent to 9.5 percent, while the gross margin improved from 22.9 percent to 23.4 percent [1]. Earnings per share were reported at SEK 2.57, compared to SEK 1.77 in the prior year, though this figure was slightly below the SEK 2.60 expected by FactSet [2][4].

Order Backlog and Production Capacity

The total order backlog reached SEK 364,223 million by the end of September 2026, up from SEK 202,408 million a year earlier [1][2]. This backlog is equivalent to approximately four and a half years of revenue at the 2025 rate [1]. For 2027 alone, SEK 102.1 billion has already been contracted, which is 29 percent more than all the revenue generated in 2025 [1]. To address this demand, the company announced in July 2026 an initiative to increase annual jet production capacity from 15 units to a range of 20 to 30 units, contingent upon securing substantial industrial partnerships [3]. Deliveries for the 16 Gripen E fighter jets for Ukraine are scheduled for 2029-2030 [3].

Cash Flow and Strategic Outlook

Cash flow from operations reached SEK 6,785 million in the quarter, a substantial increase from SEK 142 million a year earlier [1][2]. This improvement is attributed to the business model where governments make down payments when contracts are signed and as work progresses [1]. Net cash stood at SEK 8,679 million, compared to SEK 3,989 million at the end of 2025 [1][2]. CEO Micael Johansson stated that long-term market prospects remain favorable, citing airspace violations and hybrid threats [1][3]. The company continues to invest in future capabilities, with self-funded research and development spending reaching SEK 3,723 million in the first nine months, up 47 percent from the previous year [1]. Saab AB, headquartered in Sweden, serves the global market with a focus on defense and security solutions [5][7].

Sources

Defense Industry Military Procurement