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Saab AB
(SAAB.B)
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Rating:75Outperform
Price Target:
kr714.00
▲(11.88% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong financial performance and a very constructive earnings update (rapid growth, expanding EBIT, record backlog, and cash conversion above guidance). Technicals are supportive with the stock trading above major moving averages, though near-overbought stochastic readings add some caution. The biggest detractor is valuation, with a high P/E and very low dividend yield.
Positive Factors
Strong growth and backlog visibility
Rapid organic growth, strong EBIT expansion, and a record backlog indicate broad customer demand and substantial future delivery visibility. The backlog supports planning, capacity utilization, and revenue continuity over multiple years, reducing reliance on individual quarterly contract wins.
Negative Factors
T-7 program weighs on profitability
The T-7 ramp-up is a material, continuing drag on Aeronautics profitability while production volumes remain below the level needed to support the factory. Additional automation, training, and line-adjustment costs could keep margins under pressure until execution and scale improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and backlog visibility
Rapid organic growth, strong EBIT expansion, and a record backlog indicate broad customer demand and substantial future delivery visibility. The backlog supports planning, capacity utilization, and revenue continuity over multiple years, reducing reliance on individual quarterly contract wins.
Read all positive factors
Saab AB (SAAB.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr344.87B
Dividend Yield0.38%
Average Volume (3M)1.20M
Price to Earnings (P/E)48.6
Beta (1Y)0.82
Revenue Growth26.03%
EPS Growth35.89%
CountrySE
Employees29,380
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)13.19
Shares Outstanding533,847,800
10 Day Avg. Volume1,145,058
30 Day Avg. Volume1,202,742
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)6.66
Price to Sales (P/S)3.64
P/FCF Ratio48.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr661.00Price Target Upside3.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)15.15
Revenue Forecast (FY)kr98.19B
Saab AB Business Overview & Revenue Model
Company Description
Saab AB (publ) is a global provider of products, services, and advanced solutions, primarily serving the military defense, aerospace, and civil security sectors. The company organizes its operations across five distinct segments: Aeronautics, Dyna...
How the Company Makes Money
Saab makes money mainly by selling defense platforms, subsystems, and long-term services to government and defense-industry customers, with revenue typically recognized through a mix of product deliveries and multi-year development/production cont...
Saab AB Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q3-2026)
| Next Earnings Date:Feb 05, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by more than 27% organic growth, 39% EBIT growth for the first nine months, record-level order intake, a SEK 364 billion backlog, strong cash conversion, improving liquidity, and broad-based contract and capacity momentum. The main challenges were the ongoing T-7 ramp-up impact, lower quarterly margins in Dynamics and Naval, higher emissions from flight testing, supply-chain pressures, and pending political or contractual decisions in Canada. Management remained confident in its medium-term targets and the outlook.Positive Updates
Strong Nine-Month Organic Growth and EBIT Expansion
SAAB reported organic growth of more than 27% during the first nine months, while EBIT increased by 39%. Management described the year as strong.
Negative Updates
T-7 Program Continues to Reduce Aeronautics Profitability
The T-7 program remains in a ramp-up phase and is having a negative impact on Aeronautics profitability. The quarterly impact is slightly above the previously guided SEK 100 million, with an approximate annual impact of SEK 500 million. Management said production volumes at Boeing are not yet high enough to support the factory.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Nine-Month Organic Growth and EBIT Expansion
SAAB reported organic growth of more than 27% during the first nine months, while EBIT increased by 39%. Management described the year as strong.
Read all positive updates
Company Guidance
Management said cash conversion is guided above 60%, while current cash conversion is 77%, and it expects to end this year with a strong cash flow. Capacity investments are on a rolling 12-month basis above SEK 8 billion in only capacity investments, with a rather high level also the coming year at least; the peak levels might be 2026, 2027, and then they might come down a bit. Aeronautics capacity is planned to increase from roughly 15 aircrafts per year to between 25 and 30 aircraft per year, while T-7 production is somewhere between 50-80, depending on contracts, with initial operation capability in August next year and roughly SEK 500 million affecting Aeronautics’ margin on a yearly basis. Surveillance is expected to move from two aircraft per year to six aircraft per year, with Surveillance profitability described as always above 10%, while Dynamics is expected to have a solid end of the year and Naval is expected to see improvement going forward.Saab AB Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.19B | 79.15B | 63.75B | 51.61B | 42.01B | 39.15B |
| Gross Profit | 19.42B | 17.17B | 13.66B | 11.26B | 8.89B | 8.21B |
| EBITDA | 11.78B | 11.71B | 8.49B | 7.36B | 5.39B | 4.90B |
| Net Income | 7.10B | 6.31B | 4.17B | 3.38B | 2.19B | 1.93B |
Balance Sheet | ||||||
| Total Assets | 135.60B | 124.70B | 99.82B | 82.76B | 72.36B | 65.04B |
| Cash, Cash Equivalents and Short-Term Investments | 12.75B | 15.36B | 11.74B | 13.47B | 12.86B | 11.84B |
| Total Debt | 14.45B | 14.71B | 10.38B | 10.04B | 9.99B | 9.72B |
| Total Liabilities | 85.02B | 81.03B | 64.01B | 50.40B | 42.49B | 41.79B |
| Stockholders Equity | 50.19B | 43.34B | 35.50B | 32.03B | 29.49B | 22.98B |
Cash Flow | ||||||
| Free Cash Flow | 6.58B | 5.99B | 1.89B | 2.92B | 2.34B | 3.19B |
| Operating Cash Flow | 14.48B | 12.11B | 6.73B | 6.46B | 4.65B | 5.71B |
| Investing Cash Flow | -12.68B | -11.57B | -4.18B | -5.92B | -2.44B | -4.70B |
| Financing Cash Flow | -2.00M | 574.00M | -1.93B | -1.23B | -1.18B | -1.64B |
Saab AB Technical Analysis
Positive
638.20
Price Trends
620.49
Positive
588.88
Positive
606.25
Positive
Market Momentum
7.80
Negative
58.80
Neutral
81.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SAAB.B, the sentiment is Positive. The current price of 638.2 is above the 20-day moving average (MA) of 617.16, above the 50-day MA of 620.49, and above the 200-day MA of 606.25, indicating a bullish trend. The MACD of 7.80 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SAAB.B.
Saab AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | kr281.05B | 45.94 | 5.75% | 1.25% | -15.51% | -47.18% | |
75 Outperform | kr344.87B | 48.60 | 15.85% | 0.38% | 26.03% | 35.89% | |
70 Outperform | kr343.44B | 17.62 | 18.10% | 2.92% | -3.96% | -21.11% | |
62 Neutral | kr11.44B | 41.61 | 17.14% | 0.32% | 91.38% | ― | |
56 Neutral | kr808.34M | -17.82 | -5.29% | ― | -12.86% | -1793.94% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | kr2.05B | 76.03 | 18.20% | ― | ― | ― |
* General Sector Average
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Saab AB Corporate Events
Saab’s Q3 Surge Underlines Strength in Global Defence Demand
Oct 23, 2026
Saab reported strong results for January to September 2026, highlighting surging order bookings of SEK 65.8 billion driven by major contracts for Gripen E to Ukraine, GlobalEye to an undisclosed customer and systems for Germany’s new frigate...
Saab Wins SEK 1.3 Billion Gripen Flight Control Computer Upgrade Contract
Oct 15, 2026
Saab has secured a SEK 1.3 billion order from the Swedish Defence Materiel Administration for the development of a new generation flight control computer for the Gripen fighter aircraft, with deliveries scheduled from 2030. The project will be car...
Saab Advances GlobalEye AEW&C Talks With Canada Under New Term-Sheet
Sep 25, 2026
Saab has signed a non-binding term-sheet with Canada’s Defence Investment Agency to define the scope and framework for negotiations over the Royal Canadian Air Force’s future Airborne Early Warning and Control capability. The move foll...
Saab Names Nomination Committee Ahead of 2027 Annual General Meeting
Sep 24, 2026
Saab AB has appointed its Nomination Committee for the 2027 Annual General Meeting, reflecting the shareholder structure as of 31 August 2026 and representing 50 percent of the company’s total voting rights. The committee includes Chairman o...
Saab Reshapes Top Management to Drive Defence Growth and Innovation
Sep 10, 2026
Saab AB announced a series of changes to its Group Management team effective 1 October 2026, aimed at supporting increased growth and innovation across its core defence and aeronautics businesses. The reshuffle reallocates leadership roles within ...
Netherlands Moves Toward Procuring Saab’s GlobalEye AEW&C Aircraft
Sep 10, 2026
The Netherlands has signed a Letter of Intent with Sweden to acquire Saab’s GlobalEye Early Warning and Control aircraft, marking a significant step toward bolstering its airborne surveillance and defence capabilities. Although no formal con...
Saab Secures SEK 2.9 Billion Contract for Future Fighter System Concept Work
Sep 9, 2026
Saab AB has secured a SEK 2.9 billion contract from the Swedish Defence Material Administration (FMV) to continue concept work on a future fighter system between 2026 and 2028, with options extending to 2029 and 2030. The programme builds on earli...
Saab Wins SEK 1.2 Billion Finnish Order for Next-Generation Air Defence System
Aug 28, 2026
Saab has secured a SEK 1.2 billion initial order from the Finnish Defence Forces Logistics Command for its RBS 70 NG short-range air defence system, reinforcing the company’s role as a key supplier to Finland. The contract also includes a fr...
Saab Wins SEK 10.1 Billion GlobalEye Order from Middle East Customer
Jul 27, 2026
Saab AB has secured a SEK 10.1 billion order from an undisclosed Middle Eastern country for two GlobalEye airborne early warning and control aircraft, with deliveries scheduled for 2030. The contract, protected by national security confidentiality...
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.