Saab’s surveillance surge sharpens growth outlook as naval reset takes shape

Saab reported double-digit sales growth in the first quarter of 2026, with particularly strong performance in its Surveillance business area.

During the presentation on Thursday, chief executive Micael Johansson pointed to what the company sees as substantial growth.

- It was a strong quarter, he said.

Surveillance was among the strongest performers, with Johansson highlighting the Giraffe 1X system and sustained market interest in the GlobalEye platform, including from Poland and Germany.

The company also referenced a counter-UAS order from Sweden valued at SEK 2.6 billion.

- It is a highly modular and system-agnostic solution, which we assembled in a very short time. That is key — we can deliver products that adapt quickly to changing requirements, Johansson said.

Naval business

A significant step was the creation of a new naval business unit within the company. Based on historical figures, the unit is expected to generate annual sales of around SEK 6 billion.

- This is a business with potential for growth, said chief financial officer Anna Wijkander.

From 1 April, Saab consolidated its naval activities into a single business area, bringing together shipbuilding and combat systems under one organisational structure.

The new unit, named Naval, combines business area Kockums with most of the Naval Combat Systems unit. 

According to Johansson, Saab is in advanced discussions with Poland, and Johansson said he hopes to finalise a contract in the next quarter, while stressing that timing remains uncertain.

According to Saab’s interim report for January to March 2026, growth was driven by medium-sized orders, with fewer large orders received during the period.

Dynamics delivers margin

Sales totalled SEK 19,164 million, up from SEK 15,792 million, corresponding to organic growth of 23.6 percent, compared with 10.9 percent in the same period last year.

- We have seen double-digit growth across all our business areas, Wijkander said.

Saab reported an EBIT margin of 10 percent, primarily driven by the Dynamics business area, which delivered a margin of 17.5 percent.

- As always, it is important to note that margins in Dynamics vary from quarter to quarter, Wijkander said.

The order backlog remains strong at SEK 274 billion, of which 72 percent relates to international business.

Looking ahead to 2027, Saab expects annual growth of around 22 percent.

Johansson added that while there are no immediate concerns, the company will need to continue strengthening resilience over time.

- As I have said many times, you need to work with your supply chain in depth. You have to assess resilience across components and materials, and understand whether you or your suppliers hold sufficient stock.

- This is something we are working on continuously to ensure we have adequate protection, said Micael Johansson.