Saab Soars as Defense Sales Propel Profit Growth amid Military Spending Surge
Swedish defense firm Saab reported a 16% profit increase in Q3, slightly below expectations, bolstered by increased military spending due to the geopolitical climate. Saab raised its sales forecast, and shares have surged by 111% this year. Recent developments include a potential massive export order from Ukraine for Gripen jets.
Swedish defense group Saab has reported a 16% increase in third-quarter profit, falling just short of analysts' expectations. Despite the marginal shortfall, the company bolstered its sales guidance, spurred by rising military spending in Europe due to heightened geopolitical tensions and the conflict in Ukraine.
Operating profit for Saab, known for its Gripen fighter jets, reached 1.37 billion crowns ($145.5 million). The company's shares have climbed an impressive 111% this year, driven by market demand and stability. The increased defense budgets of NATO countries, prompted by an assertive U.S. policy, have augmented the defense sector's vitality.
This week, Saab marked a significant milestone with a long-term cooperation agreement with Ukraine, eyeing the possibility of exporting up to 150 Gripen E jets, potentially Sweden's largest aircraft export order. Saab's full-year sales growth forecast has been raised to 20-24%, despite a slight dip in quarterly order intake.
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