Saab posts stronger-than-expected Q2 earnings.

Swedish defence giant Saab reported stronger-than-expected second-quarter earnings on Friday as accelerating European defence spending drove record orders and rapid sales growth.

Source: Sharecast

Order bookings surged 141% to SEK 68.4bn, ahead of market expectations, including a SEK 47bn Polish submarine contract, while the order backlog reached SEK 317.7bn from SEK 197.6bn a year earlier.

Sales rose 29.8% organically to SEK 25.5bn and operating profit increased 41% to SEK 2.79bn, beating forecasts, with the EBIT margin improving to 11%.

Net income climbed to SEK 2.17bn from SEK 1.54bn, while operational cash outflow narrowed sharply to SEK 62m from SEK 1.14bn.

Saab said it was expanding capacity to meet structurally higher demand for products including Gripen fighter jets, submarines, missiles and surveillance systems, as European governments accelerate rearmament, with shares rising as much as 4.5% in early Stockholm trading.

At 0956 CEST (0856 BST), shares in Saab were up 2.67% in Stockholm at SEK 530.5.

Reporting by Josh White for Sharecast.com.

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