Saab AB delivered exceptional financial results in 2024, marking another year of accelerated growth as global demand for its defence products soared. Saab’s revenues have roughly grown by more than 50 percent over the past two years. Saab’s 2024 was marked by a flurry of technological advancements: new fighter and UAV tech, smarter sensors and EW gear, cutting-edge missiles and anti-armour weapons, autonomous naval control systems, and enhancements to major systems like Gripen and GlobalEye.
Saab’s heavy investment in R&D – they continued to invest substantially in 2024, focusing on software-driven and AI-enabled capabilities – is ensuring it remains an innovation leader. These advancements not only generate future revenue streams but also solidify Saab’s reputation as a high-tech innovator delivering strategic capabilities in defence and security.
Sales for the full year 2024 were SEK 64 billion (EUR 5.77 billion), representing organic growth of ~24% over 2023. Its 2023 sales were around SEK 52 billion (EUR 4.69 billion), which itself was ~23% higher than 2022, meaning Saab’s revenues have roughly grown by more than 50 percent over the past two years.
This rapid growth trajectory contrasts with the earlier part of the decade when annual sales hovered in the 30–36 billion SEK range (EUR 2.70–3.24 billion) – highlighting how the geopolitical shift post-2022 has boosted Saab’s business. Profitability improved in 2024: operating income rose to SEK 5.6 billion (EUR 505 million – 8.9% operating margin) from SEK 4.3 billion (EUR 388 million) in 2023 (8.3% margin). Net income was SEK 1.44 billion (EUR 129.87 million) in Q4 alone, up 17% YoY, and full-year net profit likewise saw double-digit growth.
Order intake reached SEK 96.8 billion (EUR 8.73 billion) in 2024, up 24% year-on-year. This is an all-time high for Saab orders, reflecting large contract wins. It drove Saab’s total order backlog to SEK 187 billion (EUR 16.86 billion) by end-2024 – a record level, up from SEK 153 billion (EUR 13.80 billion) a year prior. This backlog is nearly three times Saab’s annual sales, providing strong visibility into future revenue. The company’s book-to-bill ratio in 2024 was about 1.5, indicating orders significantly outpaced sales, a positive sign for continued growth. Over a 5-year span, Saab’s financials show a dramatic turnaround: from relatively modest growth pre-2020 to high growth post-2021. The war in Ukraine and heightened defence spending contributed to Saab’s revenue CAGR accelerating to the high-teens. Additionally, Saab has kept a solid financial footing – in 2024 it generated positive operational cash flow and even increased its dividend – proposed SEK 2.00 (EUR 0.18) per share, up from 1.60 (EUR 0.14) – signalling confidence in sustained performance. The company also updated its medium-term targets (2023–2027) to aim for ~18% organic sales CAGR and even higher EBIT growth, which underscores Saab’s ambitions to continue this strong trajectory. Overall, Saab’s 2024 results confirm its status as one of Europe’s fastest-growing defence firms, underpinned by robust profitability and a surging backlog.
Technological Innovations in 2024
Innovation is at the heart of Saab’s identity, and 2024 saw the company launch and develop multiple cutting-edge technologies across its product areas. One of Saab’s flagship products, the Gripen E multirole fighter, achieved milestones in 2024 as it entered squadron service in Sweden and Brazil. Saab worked on software upgrades and new capabilities for Gripen E, such as integration of the Meteor long-range air-to-air missile and enhanced electronic warfare suites. Saab also intensified its R&D on future fighter concepts, including unmanned wingman drones to accompany manned fighters – over 100 engineers are working on this “Future Fighter” project to keep Saab at the forefront of combat aircraft beyond 2050.
In the realm of sensors and aerospace systems, Saab introduced innovative solutions like the Compact Radar Module for the Giraffe 1X radar, an all-in-one radar unit that can be flexibly deployed. They also unveiled the Sirius Compact L20C – a new lightweight electronic warfare sensor for signals intelligence – expanding Saab’s portfolio in the growing EW market. In avionics, Saab’s collaboration with Boeing on the T-7A Red Hawk advanced jet trainer yielded progress – though the program faced some delays. Saab delivered rear fuselage sections and worked on readiness for ramp-up when the U.S. Air Force greenlights full production.
Saab’s Dynamics division (which produces missiles, anti-armour weapons, and more) had notable innovations and successes. The Carl-Gustaf M4 recoilless rifle, a modern iteration of a venerable system, continued to be a star product – Saab not only received record orders, as Poland signed a SEK 12.9 billion (EUR 1.16 billion) deal for Carl-Gustaf M4 and ammo over 2024–2027, but also started constructing a new Carl-Gustaf M4 factory in India – its first such facility outside Sweden. This is both an expansion and an innovation, as Saab will incorporate advanced carbon-fibre technology in manufacturing to lighten the weapon. Saab’s NLAW anti-tank missile, developed with the UK, and AT4 disposable anti-armour weapon saw refinements to address lessons from extensive use in Ukraine, ensuring they remain top-of-class. Meanwhile, Saab’s missile systems like RBS-15 anti-ship missiles and RBS-70 NG air defence missiles continued to get upgrades – e.g., improved seekers, extended range versions) to meet evolving threats.
In the naval domain, Saab’s Kockums subsidiary progressed on new submarine development – the A26 Blekinge-class for Sweden – with innovative features for stealth and swarming underwater drones. Saab also launched the Autonomous Ocean Control (AOC) system – an autonomy kit for naval vessels and unmanned surface vehicles – providing advanced capabilities for remote and autonomous operations at sea. This is significant as navies look for more unmanned solutions; Saab is ensuring it has offerings in this arena.
Additionally, Saab remained a leader in integrated systems like the GlobalEye Airborne Early Warning & Control (AEW&C) plane. In 2024, Saab delivered the 4th GlobalEye to the UAE and demonstrated GlobalEye’s capabilities to potential new customers (there’s strong interest globally for multi-sensor surveillance jets, and Saab’s system is one of the most advanced). Saab’s continuous improvements to GlobalEye’s Erieye ER radar and integration of new SIGINT sensors keep it at the cutting edge of surveillance tech. Saab is even pitching a version to NATO as a possible replacement for aging AWACS planes.
Sector-by-Sector Business Evolution
Saab is structured into key business areas – Aeronautics, Dynamics, Surveillance, Kockums, and Support & Services – each of which has evolved with the shifting defence landscape:
- Aeronautics: Encompassing fighter aircraft (Gripen), the Boeing T-7A trainer partnership, and future air systems, this sector has evolved from a Sweden-centric business into an international fighter program. Over 2019–2024, Aeronautics shifted focus to the new Gripen E/F while winding down Gripen C/D production. By 2024, serial production of Gripen E was in full swing for Sweden and Brazil, and the sector saw growth from export prospects: Hungary ordered additional Gripens/upgrades, Thailand, and others are in negotiations. Aeronautics’ margins have been pressured by heavy R&D and the T-7A program delays, but Saab expects improvement as volumes increase. Evolution is also marked by Saab’s pursuit of future combat air systems – it has a team working on sixth-generation concepts and possible participation in international projects – though Sweden didn’t formally join the Franco-German or UK-led programs, Saab keeps options open. The Aeronautics business is transforming to ensure Sweden remains one of the few nations that can produce advanced combat aircraft, while also contributing to allied airpower. Gripen E is being marketed to more countries, and Saab hints at potential unmanned aircraft offerings down the line.
- Dynamics: This sector, which produces ground combat weapons, missiles, torpedoes, and more, boomed due to the war-driven demand. From 2022 to 2024, Dynamics saw dramatic order growth – e.g., orders in Q2 2024 alone were SEK 39.6 billion (EUR 3.57 billion), with several large contracts. Its product line – NLAW, AT4, Carl-Gustaf, RBS-70/90, RBS-15, etc. – has proven itself in real conflicts, raising interest globally. In 2024, Dynamics evolved by scaling up production capacity – including partnering internationally, such as the India Carl-Gustaf plant and Polish production of some components for Carl-Gustaf. It also diversified: Dynamics is working on ground-launched precision weapons and expanding its Training & Simulation products, given the rising demand for military training. The evolution of Dynamics is essentially a scale-up and diversification to meet massive order books; by end-2024, the division’s order backlog was significantly larger, and Saab indicated Dynamics would drive a lot of the near-term growth. The mention that “our entire [Dynamics] portfolio is experiencing strong demand” shows how broad-based this evolution is – from anti-tank systems to next-gen anti-ship missiles.
- Surveillance: This division – sensors, command & control, AEW&C systems – has adapted to an era of integrated air and missile defence and networked warfare. In 2024, Surveillance benefited from orders for GBAD (Ground-Based Air Defence) radars, command systems, and notably AEW systems like GlobalEye. Saab’s Surveillance business has evolved by incorporating more software-driven capabilities (like integrated SIGINT in GlobalEye, AI in radar signal processing) and by developing compact products – e.g., the Giraffe 1X radar that can mount on vehicles. Surveillance is positioned to capitalize on NATO’s focus on air defence. Saab is marketing its radars and electronic warfare suites vigorously. Additionally, Surveillance has a Security sub-segment that provides civil security and traffic management solutions – a smaller part, but it leverages the tech from defence for civilian use. Evolution here is about staying ahead in sensor tech (Sweden’s investment in new radars for its Air Force benefits Saab) and grabbing opportunities like replacing NATO AWACS, where Saab is strongly advocating GlobalEye. By 2024, Surveillance’s backlog grew with wins like new orders for GlobalEye from Sweden and radar systems for countries such as the Netherlands and NATO agencies.
- Kockums (Naval): Saab’s naval division has transformed since Saab acquired it from ThyssenKrupp in 2014. Kockums is now fully integrated into Saab and in 2024, was building two A26 submarines for Sweden and mid-life upgrades for Gotland-class subs. It is also offering submarine designs to export prospects (Netherlands, Poland) and developing new surface ship capabilities (they delivered new stealth corvettes to Sweden in recent years and are modernizing mine warfare vessels). Kockums evolved by focusing on niche high-tech naval products – super-stealthy subs with Stirling AIP (air-independent propulsion), and signature-reduction tech for surface ships. In 2024, Kockums also unveiled concept work on uncrewed underwater vehicles and teamed with Dynamics on underwater systems. While Kockums is smaller revenue-wise, its evolution is significant for Sweden’s navy, and potential export deals could greatly boost it. Saab sees Kockums as part of the broad trend of undersea domain importance (e.g., protecting undersea cables, where Saab’s Autonomous Underwater Vehicles and sensors are relevant).
- Support & Services: This business area handles sustainment, logistics, and aftermarket support for Saab’s products worldwide. As Saab sells more systems, this segment has grown accordingly. By 2024, Saab ramped up services such as Gripen support contracts for e.g. Sweden and the Czech Republic, GlobalEye support for the UAE, and field servicing of Carl-Gustaf and AT4 in conflict zones. The evolution here is towards performance-based support contracts and training services. For example, Saab provides comprehensive support for Sweden’s Gripen fleet as a long-term commitment, and international Gripen users get upgrade and training packages managed by this unit. This ensures steady revenue and closer customer ties. Saab’s service arm is also leveraging digital tools – e.g., using predictive maintenance for Gripen or remote support solutions, reflecting how service is evolving with technology. Given the big increase in systems in use, due to high sales, Support & Services will play a bigger role in Saab’s future, ensuring customers get maximum readiness from their Saab equipment.
Each Saab division in 2024 is scaling up and innovating: Aeronautics with new fighters and drones, Dynamics with record weapons orders and new co-production, Surveillance with state-of-the-art sensors and AEW, Kockums with advanced subs and UUVs, and Support with expanded global sustainment. Saab as a whole has evolved from a primarily Swedish defence supplier into a multi-domain, multinational defence solutions provider, balancing domestic projects with a growing number of export programs – all while maintaining technological edge in its products.
Future Outlook and Strategic Direction 2025->
Saab’s strategic outlook for 2025 and beyond is one of confidence and bold growth, underpinned by its record order backlog and the pressing defence needs of its customers. The company’s official 2025 outlook projects organic sales growth of 12–16% and even higher EBIT growth, indicating continued improvement in efficiency. Saab’s CEO Micael Johansson emphasized that despite a complex global environment, Saab is committed to being a reliable partner as countries build up defence capabilities.
Saab’s Future Strategy
- Executing the Backlog: With nearly SEK 187 billion (EUR 16.87 billion) in orders to deliver, Saab’s focus is on ramping up production and delivery capacity. This involves hiring – Saab added almost 3,000 employees in 2024 and will likely add more – and expanding facilities. The company specifically mentioned plans to increase capacity to meet demand, even bringing forward investments for that purpose. For instance, in Dynamics (weapons) and Surveillance (radars), Saab is likely to invest in new production lines or partner factories abroad to ensure timely deliveries. Efficient execution will cement Saab’s reputation and convert the backlog into revenue.
- Global Expansion in Key Markets: Saab will strengthen its presence in strategic markets. It already operates in over 30 countries and sells to over 100. Notably, India is a focal point – beyond the Carl-Gustaf factory, Saab has been offering Gripen to the Indian Air Force and may leverage the industrial partnership there to win a fighter deal in the future. In the Asia-Pacific, Saab sees opportunities as nations diversify their defence suppliers; Thailand, Indonesia, the Philippines, and others are targets for Gripen or radar sales. Saab also mentioned interest from Colombia and Peru for Gripen, pointing to Latin America as a region of growth. In Europe, with Sweden (its home market) joining NATO, Saab can now partake in NATO projects and joint procurement without restriction – a strategic shift. Saab will try to get NATO itself to consider its products (as with GlobalEye for AWACS replacement). The company’s outlook is that European defence spending will remain high regardless of NATO/EU program decisions, so Saab will continue pitching its solutions across Europe. It has an eye on large upcoming programs, e.g., the German-led European Sky Shield for air defence, where Saab could contribute sensors or command systems.
- Innovation and R&D: Saab is doubling down on innovation to sustain long-term competitiveness. The updated medium-term target of ~18% CAGR implies heavy R&D investments now for future payoff. Saab identifies software-defined capabilities, autonomy, and AI as priority areas. We can expect Saab to invest in things like AI-enabled drone swarms, networked defense systems (integrating land/air/sea sensors in real time), and perhaps cyber defense products. The future fighter UAV/wingman project is a strategic bet to keep Sweden in the game for the next generation of air combat systems – by the late 2020s, Saab will need to align either with an international fighter program or push a unique Swedish solution; work done now is crucial for that. Also, Saab will push development in space and cyber domains – e.g., its venture into small satellites for surveillance or its growing cybersecurity business – aligning with modern defense trends.
- Collaboration and Acquisitions: Saab’s strategy includes acquiring companies in prioritized areas. This likely means it will look for niche tech firms (perhaps in cyber, AI, or specific hardware like stealth materials) to augment its portfolio. Collaboration-wise, Saab is open to partnerships (the T-7A with Boeing being a prime example). If a new pan-European project arises (for a next-gen tank, for example), Saab might partner to ensure Sweden has a role and that Saab tech is included. Already, Saab is part of the British Tempest stealth fighter program as an observer/partner, and if Sweden joins that fully, it could shape Saab’s future significantly. Saab will also continue collaborative marketing, such as teaming with Boeing to sell the T-7 or with Sweden’s FMV to jointly market Gripen (government-to-government deals).
- Sustainability and Industrial Responsibility: Saab’s outlook also contemplates sustainability – it published a Sustainability Report and achieved many internal sustainability targets. While this is about corporate responsibility, it also has a strategic effect: for example, developing greener technologies or reducing environmental footprint could become a selling point for some defence customers. Saab aims to be a “sustainability leader in defence”, which might involve things like eco-friendly manufacturing processes or ensuring its weapons minimize collateral damage, aligning with Swedish values and NATO standards.
Saab’s strategic direction is growth-oriented and forward-looking: fulfil massive current orders, capture new market share, especially via exports and NATO integration, and invest in the next generation of technologies to remain at the cutting edge. The company emerges from 2024 with strong momentum and plans to keep it going. Given that global tensions remain high, Saab’s capabilities are in demand – its strategy is to scale up swiftly without compromising innovation, thereby securing its place as one of the world’s premier defence companies in the coming decade.
Export Focus and Global Market Positioning
Exports have long been vital for Saab, and by 2024 the company’s backlog was 72% international – up from 64% a year earlier – a clear indicator of its global reach. Saab’s export strategy is multi-pronged, targeting different regions with tailored approaches:
- Europe and NATO: With Sweden joining NATO, Saab is now effectively a “NATO defence contractor.” It actively engages in European collaborations (for example, Saab has partnered with British, Italian, and Japanese firms on the Global Combat Air Programme (GCAP) for future fighters as an industry contributor). In 2024, Saab secured orders from several European countries: e.g., additional Gripen fighters for Hungary – upgrading their fleet with more advanced versions, short-range air defence for Sweden (through its Mobile SHORAD system), and coastal defence missiles for a Baltic country. Saab is also expanding in countries like Finland – it opened a new development centre in Tampere focused on radar technology (Saab’s expansion in Finland includes acquiring a Finnish defence electronics firm in 2023). Within NATO, Saab is pushing hard to be included in joint procurements; for instance, Saab’s Carl-Gustaf M4 was offered through a NATO Support & Procurement Agency framework, allowing many countries to easily order it (which Poland did in a big way). Saab’s export focus in Europe is also about replacements: as allies donate older kit to Ukraine, Saab offers modern replacements – like AT4s for expended anti-tank stocks, or Giraffe radars to countries enhancing their air defence.
- United States and North America: Saab has a significant presence in the U.S., which is both a partner and a market. The T-7A Red Hawk trainer (in partnership with Boeing) is one anchor, expected to eventually produce hundreds of jets for the USAF – Saab builds the aft fuselage in Linköping and in a new U.S. factory. Saab also localized production of systems like the AT4 in the U.S. previously, and it operates Saab Defense and Security USA which sells things like the AUV62-AT anti-submarine training target to the U.S. Navy. In 2024, Saab’s American growth was more indirect, through partnerships, but strategically, Saab’s export strategy includes cracking the U.S. market further – possibly by offering the GlobalEye for U.S. AWACS replacement, a long shot, but they are trying to get NATO’s attention, which could influence the U.S.), or supplying components into U.S. programs. Canada is another North American prospect – Saab offered the Gripen for Canada’s fighter contest – though it chose F-35, Saab made a strong bid which raised its profile.
- Asia-Pacific: Saab’s expansion in Asia is notable. The Carl-Gustaf M4 factory in India is a landmark: it not only serves Indian Army needs – India has used Carl-Gustaf since the 1970s – but from 2025, it positions Saab within India’s massive defence market with a local base. Saab’s presence in India could lead to future collaborations or orders (Saab is reportedly eyeing India’s upcoming contest for 114 multi-role fighters, pitching the Gripen E). Elsewhere in Asia, Saab has had success in Thailand (Gripen and Erieye AEW for the Royal Thai Air Force) and hopes to sell Thailand additional Gripen Es – negotiations were mentioned in 2024. The Philippines bought Saab’s Coastal Defense Missile System (RBS-15 missiles) recently, and Saab is also courting countries like Malaysia and Indonesia for Gripen or GlobalEye. In the Australasia region, Saab is a key supplier to Australia’s military (it provides the combat management system for Australian Navy ships and RBS-70 MANPADS for the Army). In 2024, Saab Australia was contracted for upgrades, and Saab is involved in Australia’s hunter-class frigate program (CMS integration). These efforts solidify Saab’s image as a Global supplier.
- Middle East and Others: Saab’s GlobalEye is in service with the UAE, and that success begets interest in the Gulf. Saudi Arabia has shown interest in Saab’s AEW or radar systems. Saab also sold AT4 and Carl-Gustaf to many armies worldwide, and in 2024, it likely saw repeat orders for these munitions as countries replenished stocks, given so many were sent to Ukraine. Latin America has potential: Brazil is already a major customer (Gripen program co-production with Embraer). Saab delivered the first Brazilian-assembled Gripen in 2024 and will deliver many through 2027, an export success that also opened up the Brazilian market for other products – Saab has a partnership for mine countermeasure vessels with Brazil. Now, Colombia and Peru’s interest in Gripen, as cited by Saab, indicates new possible deals in that region.
Saab’s export strategy emphasizes local partnerships to sweeten deals. In Brazil and India, Saab set up or promised factories. In the UAE, it offers tech transfer on GlobalEye. In Canada’s bid, Saab offered to build an entire ecosystem of maintenance. This approach of industrial collaboration makes Saab a more attractive exporter, especially for countries seeking to develop their own industries.
By numbers, international orders comprised the majority of Saab’s intake, and Saab’s marketing tagline of being a “global company” is supported by reality: e.g., 72% of backlog international, operations in 30+ countries, products used by over 50 armed forces worldwide. As an export-focused company, Saab also navigates export controls carefully (Swedish policy can restrict some sales, but being in the EU and now NATO will likely ease those for friendly nations). Saab’s ability to adapt offerings to various needs – from high-end fighters to simple infantry weapons – gives it a wide export portfolio. With geopolitical shifts encouraging many nations to diversify from reliance on U.S. or Russian equipment, Saab positions itself as a versatile alternative supplier with a high-tech pedigree.
Impact of the War in Ukraine
The war in Ukraine has significantly shaped Saab’s recent fortunes and strategic posture. First and foremost, the conflict has driven a surge in defence spending across Europe – as noted, orders jumped and defence budgets in the EU rose sharply by 2024. Saab, being Europe’s premier non-aligned (now aligned) defence company, became a natural beneficiary. Many of the weapons proving crucial in Ukraine’s defence are Saab’s products or similar to them, highlighting their relevance.
- Anti-armour weapons: The widespread use of NLAW and AT4 by Ukrainian forces to stop Russian armour boosted Saab’s profile. Though the UK was the lead for NLAW, Saab co-developed it and manufactured parts; increased orders to replenish NLAW stocks (from the UK, Sweden, Finland, etc.) flowed to Saab. The AT4 (a single-use anti-tank weapon) was supplied to Ukraine by several countries and saw extensive use; Saab likely got follow-on orders from nations refilling their inventories. Seeing these weapons in action validated their effectiveness and spurred interest from other countries, too. Saab even developed tactics and training based on Ukraine lessons to help customers maximize these weapons’ impact.
- Artillery and munitions: While Saab isn’t a big artillery producer, its Carl-Gustaf M4 recoilless rifle can fire anti-structure and anti-personnel rounds that are very useful in trench warfare and urban combat, scenarios common in Ukraine. The war underscored the need for infantry units to have portable firepower – Carl-Gustaf fits that bill, and many nations – including the U.S., Canada, and much of Europe – placed new orders or expedited planned purchases. Poland’s huge Carl-Gustaf order in 2024 (a record for that system) is directly tied to preparing for a high-intensity conflict scenario as seen in Ukraine. Saab’s decision to open the Carl-Gustaf plant in India can also be seen as a response to soaring global demand influenced by the war.
- Air defence and surveillance: The Ukraine war has been marked by intensive use of drones and cruise missiles, prompting countries to invest in short- and medium-range air defences. Saab’s RBS-70 NG MANPADS and Giraffe radars are exactly the kind of systems seeing renewed importance. For example, Ukraine itself received some RBS-70 from donors, and Latvia and others ordered new units. Saab’s radar systems, like Giraffe AMB, were deployed to cover the NATO eastern flank. Additionally, the war highlighted the value of aerial surveillance (to detect threats like low-flying missiles or to manage airspace) – bolstering Saab’s case for systems like GlobalEye, which can detect cruise missiles or drones over long ranges. Saab has actively referenced the changing threat environment (drones, etc.) in its marketing of GlobalEye and radars, making the case that Cold War-era systems need replacement by Saab’s modern solutions.
- European defence cooperation: The war accelerated moves towards joint procurement and better interoperability in Europe. Saab, now from a NATO country, can plug into those cooperative efforts more than when Sweden was nonaligned. For instance, Sweden’s decision (post-invasion) to buy a Swedish AEW aircraft, GlobalEye, and join the UK-led fighter project was partly spurred by the realization that Europe must strengthen its own defence tech base. Saab stands to gain as countries pool resources – e.g., if Europe decides on a common next-gen tank or artillery, Saab could provide key subsystems like electronics and sights, whereas previously such consortia might have excluded non-NATO Sweden. Also, the war pushed Sweden to increase its defence budget; Saab’s home orders for Gripen upgrades, new missiles, and ships all got a boost or were pulled forward.
- NATO membership of Sweden: While not a direct result of the war, it’s clearly linked. Once Sweden joined NATO, Saab’s strategic environment changed: it can now access NATO R&D funds, partake in NATO standardization, making its products more easily acceptable to NATO forces, and even potentially partner in U.S.-led programs that previously might have been politically tough. This is a long-term impact that the Ukraine war catalysed – making NATO membership politically possible in Sweden – and thus it opened new horizons for Saab – but also competition, as U.S. firms will eye the Swedish market more too.
The Ukraine war has validated Saab’s product lineup, increased demand for its systems, and integrated Saab more deeply into the Western defence community. Saab’s CEO summarized the situation, noting “an unusually difficult time to predict… but definitely a strong need for defence capabilities and a strong market going forward”. This strong market is directly because countries have witnessed the brutal Ukraine conflict and are determined to arm up. Saab’s revenues and orders have spiked as a consequence. While Saab is not directly supplying Ukraine – Sweden has provided some equipment, but carefully – the indirect effects are profound: its weapons are being used, via allies, its future sales are rising, and it has gained a sense of urgency in innovation – e.g., anti-drone tech, countermeasure systems against tactics seen in Ukraine. The war has essentially reaffirmed Saab’s raison d’être – to equip nations to keep their people safe in the face of aggression – and has put Saab at the forefront as Europe re-arms for deterrence.
Role in Sweden’s Economy and Defence Capability
Saab occupies a special place in Sweden’s economy and national defence framework, often described as one of Sweden’s “crown jewel” industries. Economically, Saab is among Sweden’s largest industrial companies (outside pure civilian sectors like automotive or telecom). With 24,000 employees globally, the majority in Sweden, Saab is a major high-tech employer, covering engineers, software developers, and skilled manufacturing workers. It contributes significantly to exports – defence and aerospace products are a high-value export category for Sweden. Saab’s success thus supports Sweden’s trade balance and regional economies like Linköping, the centre of aerospace production, and Gothenburg/Malmö – naval and radar production centres. There’s also a multiplier effect – Saab works with hundreds of Swedish subcontractors – small precision engineering firms, electronics companies, etc., sustaining an ecosystem of innovation.
In terms of innovation and technology, Saab’s research spending and collaborations make it a linchpin in Sweden’s advanced engineering sector. Historically, technologies developed for Saab’s fighters or submarines have found civil applications or spurred spin-off companies, benefiting the wider economy. Saab’s presence also ensures Sweden retains key competencies – like fighter design, radar technology, submarine building – that very few nations have – which is a matter of national pride and strategic autonomy.
For Sweden’s defence and security, Saab is absolutely central. Sweden has a long-standing policy of maintaining a strong domestic defence industry to ensure neutrality and freedom of action (the legacy of not relying on imports). Saab enables Sweden to field advanced indigenous platforms: Gripen jets for the Air Force, surface ships and submarines for the Navy, radars and missiles for the Army, etc. This means Sweden can equip its military in a tailored way and can be more self-reliant in conflicts. Even as Sweden joins NATO, having Saab and other defence firms gives it weight within the alliance as a country that produces security, not just consumes it. During times of reduced tension, some questioned the need to supporting a domestic industry, but the Ukraine war vindicated Sweden’s approach – had Sweden not had Saab, it would be scrambling to buy everything from abroad now. Instead, it already has modern fighters and other systems, largely thanks to Saab.
Saab also plays a big part in Sweden’s arms export policy, which is an extension of foreign policy. Sweden often exports defence equipment as a way to build bilateral ties (with oversight to ensure it’s to democratic nations). Saab’s Gripen, for example, has been an instrument of diplomacy – deals with countries like Hungary, the Czech Republic, and Brazil came with deep partnerships and often training/exchanges that strengthen Sweden’s global links. Now in NATO, Sweden (through Saab) can contribute to allied capabilities – e.g., offering niche systems like GlobalEye that not many others produce.
From a regional standpoint, Saab is an economic powerhouse in the Nordic region, too. It collaborates with Norwegian and Finnish industries – namely Kongsberg and Patria – and competes with others, but overall lifts the technological level of the region. Its international success also reflects well on Swedish industry, maintaining Sweden’s image as a high-tech nation. Financially, Saab’s performance – with a market cap around $26 billion in 2024 – makes it an important component of Swedish stock markets and a source of returns for investors, including Swedish pension funds. Saab is to Sweden what, perhaps, companies like Boeing are to the US or BAE to the UK – a critical defence contractor that is simultaneously a major economic entity. It ensures Sweden’s strategic autonomy, contributes robustly to GDP and exports, and fuels innovation domestically. As Sweden transitions into NATO, Saab’s role might shift slightly towards more collaborative projects, but it will remain Sweden’s primary defence and security company. The government continues to support Saab – through R&D grants, co-development like on Gripen, etc. – recognizing that without Saab, Sweden’s ability to defend itself and have influence in security matters would be greatly diminished. Saab is an economic engine and a guardian of Sweden’s security, making it one of the Nordic region’s most important companies.
Read More:
- Saab: Innovating for resilience, security, and sustainability
- Saab: Saab year-end report 2024: Making steady progress on our profitable growth journey
- Saab: Saab starts construction of new Carl-Gustaf factory in India
- Market Screener: Saab Q2 2024 results: Strong order intake and continuous focus on capacity increases
- Saab: Gripen E-series
