KARLSKOGA, Sweden (Reuters) -Swedish defence material maker Saab reiterated on Tuesday its 2023-2027 targets for organic sales growth of around 18% with operating income growth higher than organic sales growth.
The defence company is riding the biggest demand boom since the end of the Cold War as Europe scrambles to re-arm in the wake of Russia’s invasion of Ukraine and signs U.S. priorities may be shifting away from the region.
“Saab remains committed to leading the way in an uncertain geopolitical security landscape,” it said in a statement ahead of presentations to investors.
“Going forward, we will continue to scale up our operations and will accelerate the development of future capabilities.”
Saab, which makes a wide range of military gear including fighter jets, surveillance systems, missiles and submarines, last updated the financial targets in February.
Order intake last year set a new record while its shares have doubled since the turn of the year to record highs as Europe, home to roughly two thirds of Saab’s sales, ramps up spending on long-neglected militaries.
In many ways a product of Sweden’s decades of armed neutrality, where self-sufficiency was a paramount concern, Saab is now embracing a new reality as the country embeds in NATO, opening up new business opportunities.
Saab, which competes with giants such as U.S. Lockheed Martin, France’s Dassault Aviation and Britain’s BAE Systems, said it was focused on the ramping up of capacity, and on market expansion.
“Further partnerships and M&A will strengthen the company’s strategic position and technological leadership,” Saab said.
(Reporting by Niklas Pollard in Karlskoga and Anna Ringstrom, editing by Stine Jacobsen and Louise Rasmussen)
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