Arms maker Saab posts record sales as Europe rearms / Photo: Henrik MONTGOMERY - TT NEWS AGENCY/AFP/File
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Arms maker Saab posts record sales as Europe rearms
Swedish defence group Saab on Friday reported soaring quarterly earnings and record sales as European countries beef up their defence capacities amid geopolitical tensions and uncertainties.
The company noted however that the uncertainties, including those over US President Donald Trump's tariffs scheme, also "present challenges and make it difficult to predict the future".
Saab manufactures the Gripen jet fighter, combat weapons systems and submarines among other things.
European countries have ramped up their military budgets since Russia's 2022 invasion of Ukraine.
Trump is also pressuring NATO members to more than double their defence spending to five percent of GDP, warning that he could refuse to help protect countries that do not spend enough on their own defence.
Saab saw its net profit soar by 53 percent in the first quarter from the same period a year ago, to 1.2 billion kronor ($124 million), while operating profit rose by 22 percent to 1.5 billion kronor, its strongest first quarter operating profit ever.
"Rapid changes in the global geopolitical climate have continued to underscore the urgent need for a strong European defence industry, with increased collective capacity and capabilities," Saab chief executive Micael Johansson said in the earnings report.
"The renewed focus on a capable European industrial-defence base has created a new market reality that we are adapting and responding to, even if the transition from political decisions to defence acquisition will take time," he said.
Saab reported record sales of 15.8 billion kronor, an 11 percent rise from a year earlier, and said it expected organic sales growth of between 12-16 percent for 2025.
Its order intake climbed to 19.1 billion kronor, from 18.5 billion kronor a year earlier, driven by small and medium-sized orders but it also included two large orders from Latvia and Germany.
F.Coineagan --NG
