Defence activity propels Saab
Saab obtained a follow-on capability order in Q3 2021 for the Swedish A26 Blekinge-class submarines. (Photo: Saab)
Nine-month financials reflect ‘high activity level in the defence business’ for Saab.
Saab posted a 29% year-on-year increase in orders for the nine months ended 30 September 2021, the Swedish defence and aerospace group announced on 22 October.
This total of SEK31.35 billion ($3.64 billion) was accompanied by an order backlog of SEK105 billion and a 19% headline increase in sales to SEK27.21 billion, which Saab stated was ‘driven by high activity level in the defence business’.
In Q3 alone, Saab won a large contract to modernise German Navy F123 frigates; a follow-on capability order for Swedish Navy A26 Blekinge-class submarines; an order from the US Army for Carl-Gustaf ammunition; and a contract to provide combat training solutions to Poland.
Operating income of SEK1.81 billion for the nine-month period exceeded the full-year 2020 total of SEK1.31 billion.
Micael Johansson, president and CEO of Saab, said that a weak civil aviation market, still affected by the impact of COVID-19, was more than offset by major defence orders in 2021 to date.
Johansson also referred to progress on the T-7A Red Hawk trainer aircraft programme in the US, where Saab is in the final stage of the Engineering, Manufacturing and Development phase.
However, he added: ‘The T-7A operations will continue to have a negative impact on earnings until we ramp up the production in West Lafayette.’
More from Defence Notes
-
![UK faces cost of balancing defensive capabilities abroad as Iran conflict widens]()
UK faces cost of balancing defensive capabilities abroad as Iran conflict widens
The UK has recently deployed a Type 45 destroyer to Cyprus and has bolstered its presence in the Middle East in recent weeks with supporting air power to protect neighbouring countries’ air defences.
-
![India’s strategic defence footprint expansion could be accelerated by Iran-Israel conflict]()
India’s strategic defence footprint expansion could be accelerated by Iran-Israel conflict
The latest escalation between Iran and Israel could shape New Delhi’s next-generation shield as India deepens cooperation with Israel on missile defence and drone production.
-
![Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?]()
Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?
The Pentagon spent a considerable number of THAAD and SM-3 rounds to defend against Iranian missiles in 2025 and has not fully replenished its reserves.
-
![New Zealand buys tri-service uncrewed kit from Syos Aerospace]()
New Zealand buys tri-service uncrewed kit from Syos Aerospace
As uncrewed technology continues to play an increasingly central role in modern military activities, New Zealand’s recent acquisitions point towards its the force’s focus on cost-effective capability.
