Saab AB Unsponsored ADR (SAABY) AI Stock Analysis

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Saab AB Unsponsored ADR

(Other OTC:SAABY)

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Rating:74Outperform

Price Target:$36.00▲(12.00% Upside)

Action:reiterated

Date:10/24/26

SAABY scores well on financial performance and the latest earnings call backdrop (strong growth, profitability improvement, record backlog and solid cash conversion), which are the largest drivers. The score is tempered by premium valuation (high P/E with a low dividend yield) and a only moderately bullish technical picture with near-overbought stochastic readings.

Positive Factors

Backlog visibilityThe record backlog provides substantial multi-year revenue visibility and supports capacity planning across Saab’s business areas. A balanced delivery profile and rising near-term scheduled work can improve production utilization, customer confidence, and the durability of growth over the next several quarters.

Negative Factors

T-7 profitability dragThe T-7 program remains a recurring profitability burden because production has not yet reached the scale needed to absorb the West Lafayette facility and workforce. Continued tools, automation, training, and ramp-up spending could constrain Aeronautics margins over the medium term.

Saab AB Unsponsored ADR (SAABY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $34.70B
Dividend Yield: 0.35%
Average Volume (3M): 58.40K
Price to Earnings (P/E): 45.8
Beta (1Y): 0.53
Revenue Growth: 38.73%
EPS Growth: 56.42%
Country: US
Employees: 27,865
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Saab AB Unsponsored ADR Business Overview & Revenue Model

Company Description

Saab AB (publ), a multinational company founded in 1937 and headquartered in Stockholm, Sweden, specializes in providing advanced products, services, and solutions. Its core markets are global military defense, aerospace, and civil security. The orga...

How the Company Makes Money

Saab primarily makes money by selling defense and security products and delivering long-term services to government and institutional customers. Major revenue streams generally include: (1) Product and system sales: revenue from contracts to design,...

Saab AB Unsponsored ADR Earnings Call Summary

Earnings Call Date:Oct 23, 2026(Q3-2026)|% Change Since:0.50%|Next Earnings Date:Feb 05, 2027

Earnings Call SentimentPositive

The call was strongly positive, with substantial organic growth, record order intake, a SEK 364 billion backlog, improving group profitability, strong cash flow and major contract momentum across Gripen, GlobalEye, Naval and Surveillance. The main challenges were continued T-7 ramp-up costs, lower Dynamics and Naval margins, a tougher Surveillance comparison, higher quarterly emissions and ongoing supply-chain risks. Highlights significantly outweighed the lowlights.

Positive Updates

Strong Nine-Month Organic Growth and EBIT Expansion

SAAB reported more than 27% organic growth during the first nine months of 2026, while EBIT increased 39%, which management described as a strong year.

Negative Updates

T-7 Program Continues to Weigh on Aeronautics

The T-7 program continues to negatively affect Aeronautics profitability through under-absorption and ramp-up costs. The negative impact is now slightly above the previously guided SEK 100 million per quarter and approximately SEK 500 million on a yearly basis.

Company Guidance

Saab remains confident in its targets for the period 2023-2027 and continues to guide for cash conversion above 60%; it expects a strong cash flow to end this year, a solid end of the year for Dynamics, and Surveillance faces a more challenging comparison period. Aeronautics production is planned to increase from roughly 15 aircrafts per year to between 25 and 30 aircraft per year, while T-7 production is expected to reach somewhere between 50-80 systems per year depending on contracts; T-7 is currently having a negative impact of slightly above SEK 100 million per quarter, or roughly SEK 500 million on a yearly basis, and excluding T-7 Aeronautics is on the level of high single-digit numbers. Surveillance is planned to increase from two aircraft per year to six aircraft per year. Capacity investments are above SEK 8 billion a year, might still have a rather high level also the coming year at least, might be the peak levels that we see 2026, 2027, and then we might come down a bit.

Saab AB Unsponsored ADR Financial Statement Overview

Summary

Strong fundamentals overall: multi-year revenue growth and improving profitability (net margin ~8% TTM; EBIT margin ~11% TTM) support a high score. Balance sheet leverage is moderate and improving on a relative basis, though absolute debt has risen. Cash flow is strong in TTM, but cash conversion has been uneven (FCF below net income in TTM) and operating cash flow coverage is cited as a watch-out.

Income Statement

86Very Positive

Balance Sheet

78Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	92.87B	79.15B	63.75B	51.61B	42.01B	39.15B
Gross Profit	20.59B	17.17B	13.66B	11.26B	8.89B	8.21B
EBITDA	11.56B	10.10B	8.49B	7.21B	5.25B	4.81B
Net Income	7.53B	6.31B	4.17B	3.38B	2.19B	1.93B
Balance Sheet
Total Assets	153.38B	124.70B	99.82B	82.76B	72.36B	65.04B
Cash, Cash Equivalents and Short-Term Investments	21.91B	15.36B	11.74B	13.47B	12.86B	11.84B
Total Debt	18.26B	14.71B	10.38B	10.04B	10.01B	9.72B
Total Liabilities	100.33B	81.03B	64.01B	50.40B	42.51B	41.79B
Stockholders Equity	52.59B	43.34B	35.50B	32.03B	29.49B	22.98B
Cash Flow
Free Cash Flow	12.90B	6.36B	1.89B	2.92B	2.34B	3.19B
Operating Cash Flow	21.31B	12.11B	6.73B	6.46B	4.65B	5.71B
Investing Cash Flow	-16.81B	-11.64B	-4.18B	-5.92B	-2.44B	-4.70B
Financing Cash Flow	1.61B	647.00M	-1.93B	-1.23B	-1.18B	-1.64B

Saab AB Unsponsored ADR Technical Analysis

Technical Analysis SentimentPositive

Last Price32.14

Price Trends

50DMA31.39Positive

100DMA31.21Positive

200DMA31.83Positive

Market Momentum

MACD0.24Positive

RSI49.63Neutral

STOCH51.90Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAABY, the sentiment is Positive. The current price of 32.14 is below the 20-day moving average (MA) of 32.68, above the 50-day MA of 31.39, and above the 200-day MA of 31.83, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAABY.

Saab AB Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SAABY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80Outperform	$99.29B	21.30	17.60%	1.71%	9.73%	10.46%
LMT	79Outperform	$139.32B	21.58	78.85%	2.26%	7.86%	57.22%
NOC	77Outperform	$77.94B	17.35	25.70%	1.74%	6.51%	14.02%
LHX	75Outperform	$51.38B	25.66	10.17%	1.79%	7.33%	15.31%
SAABY	74Outperform	$35.25B	45.85	15.83%	0.35%	38.73%	56.42%
AXON	66Neutral	$24.64B	98.26	7.28%	―	33.58%	-4.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

SAABY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SAABY	Saab AB Unsponsored ADR	32.14	3.81	13.45%
GD	General Dynamics	367.22	29.28	8.66%
LHX	L3harris Technologies	276.59	-7.07	-2.49%
LMT	Lockheed Martin	610.05	165.68	37.29%
NOC	Northrop Grumman Corp.	550.96	1.91	0.35%
AXON	Axon Enterprise, Inc.	315.42	-241.87	-43.40%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 24, 2026

Saab AB Unsponsored ADR AI Stock Analysis