Saab's 2024 Year-End Report Reflects Strong Growth and Market Expansion

Saab 2024 Year-End Report: A Strong Finish

Saab, the renowned Swedish defence and security firm, presented its comprehensive report for the year 2024, revealing significant accomplishments and promising projections for future growth. Micael Johansson, the President and CEO of Saab, expressed his satisfaction with the company’s robust performance, stating, "I am pleased to report that Saab ended 2024 in a strong way."

Key Performance Highlights

In the fourth quarter alone, Saab achieved impressive order bookings totaling SEK 17,556 million, which, although lower than the previous quarter's SEK 31,501 million, was mainly driven by smaller and medium-sized orders. This has resulted in a substantial order backlog amounting to SEK 187 billion, improved from SEK 153 billion.

The total sales for the quarter reached SEK 20,850 million, reflecting a notable 29% organic growth across all business segments, consistent with the updates provided in January 2025. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to SEK 2,734 million, demonstrating an increase in the EBITDA margin to 13.1%.

Johansson noted, “Our operational cash flow reached SEK 3,558 million, highlighting our ability to generate cash in a challenging economic environment, driven by significant customer payments.” Net income also saw a rise, reaching SEK 1,442 million with earnings per share increasing by 17% to SEK 2.66.

Investment in Growth

Throughout 2024, Saab made exceptional investments in expansion to meet escalating customer demands, all while navigating the complexities of geopolitical uncertainties worldwide. Johansson emphasized the company’s commitment to being a reliable partner in supporting nations to bolster their defence capabilities. Saab’s focus on enhancing European defence capacity serves as a pivotal element of its growth strategy.

Furthermore, plans for 2025 include organic sales growth in the range of 12-16%, with EBIT growth anticipated to surpass this sales growth, alongside continued positive operational cash flow.

Future Outlook

The company also updated its medium-term targets for 2023-2027, aiming for an organic annual sales growth of approximately 18% as a compound annual growth rate (CAGR). Shah’s vision emphasizes that not only will sales grow, but EBIT should also increase at a rate higher than sales, with cash conversion projected to be a minimum of 60%.

Upcoming Presentations

To discuss these results in detail, Saab’s CEO Micael Johansson and CFO Anna Wijkander will hold a presentation on February 7, 2025, at 10:00 a.m. CET, which will be accessible via a live webcast. Furthermore, a complete report and presentation materials will be available on their investor relations page. Stakeholders are encouraged to participate and submit questions during the presentation.

Saab’s Commitment

The former automotive manufacturer, now a defence and security enterprise, has joined the ranks of leading corporations contributing to global security. With 24,000 dedicated professionals, Saab is continually innovating, developing advanced systems in various domains such as aeronautics, weaponry, command and control systems, and underwater technologies. The company is firmly positioned to address the growing demand for sophisticated defence systems both domestically and globally.

Saab's forward-looking strategy and solid financial performance mark a significant chapter in the company’s ongoing journey towards greater profitability and operational efficiency. As it ventures into 2025 and beyond, the commitment to supporting nations in ensuring safety and security remains unwavering.