Swedish aerospace and defence group Saab 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 per cent rise in first-quarter operating profit to SEK1.92 billion ($208 million), beating expectations of SEK1.71 billion 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 per cent, operating income growth above sales growth and a cash conversion ratio of more than 60 per cent.
Sales amounted to SEK19.16 billion, up from SEK15.79 billion in the first quarter of 2025. That equated to organic sales growth of 23.6 per cent, just shy of the estimated SEK19.82 billion.
Johansson said Saab's supply chains have not yet been affected by the war in Iran but there has been high demand from the Persian Gulf region for its missile and drone detecting sensors.
Order bookings amounted to SEK18.24 billion in the quarter and the backlog stood at SEK274 billion.
(Reporting by Johan Ahlander Editing by Essi Lehto and David Goodman)