Skip to content Go to main navigation Go to language selector
Saab Global

Saab’s Results January-September 2016

Defence and security company Saab presents the results for January-September 2016.

Statement by the President and CEO Håkan Buskhe:

Market development
Growing turmoil around the world continues to impact the defence market and the civil security market. We are closely following market developments and the global trend toward increased investment in defence and security. Demand is clearly growing for cost-efficient systems and solutions that quickly increase operational capabilities. At the same time, technological development continues, with evermore digitalisation and automation within the defence industry. For Saab, with a large part of its operations in software development, this creates opportunities to work even more innovatively and effectively.

Order bookings and sales
Order bookings in the first nine months were in line with 2015, excluding: the Gripen contract with Brazil, the order of type A26 submarines and a mid-life upgrade for two Gotland-class submarines to Sweden, which were received then. Order bookings for the third quarter were mainly driven by important small and medium-sized deals. Two examples are the orders for the latest version of the RBS 70 air defence system and the airport group Swedavia’s continued use of SAFE as its command and control platform for the control centre at its Swedish airports.

Order bookings amounted to MSEK 14,960 (62,599).

The order backlog at the end of the period amounted to MSEK 109,521 (105,486).

Sales in the first nine months increased by 15 percent (16 per cent organic growth) to MSEK 19,615 (17,116). The increase was again mainly due to: the Gripen programme, an order in 2015 for GlobalEye, a higher level of orders in Dynamics and the development of the A26 submarine.

Operating income
Operating income amounted to MSEK 837 (553) and the operating margin was 4.3 per cent (3.2). The operating margin strengthened in line with our expectations.

Operating income was again adversely affected by investments in the development of a new jet trainer together with Boeing (T-X program), as well as by several major projects in early stages where they normally generate lower profit.

Much of our focus is on execution of the major projects in the order backlog.

In September, Boeing and Saab revealed the first two production aircraft for the U.S. Air Force’s T-X programme.

Operational cash flow amounted to MSEK 1,922 (-1,153). Cash flow was affected in the third quarter by project activity related to advances and milestone payments.

Unchanged outlook for 2016
The outlook for 2016 remains unchanged. The interest in Saab’s cost-efficient products and solutions means increased business opportunities for Saab. At the same time, defence procurements are preceded by processes, which are difficult to assess, both in terms of timing and outcome.

Unchanged outlook statement 2016:

  •  In 2016, we estimate sales to be in line with Saab’s long-term financial goal: annual organic sales growth of 5 per cent.
  •  The operating margin 2016, excluding material non-recurring items, is expected to be in line with 2015.

Financial highlights

MSEK  Jan-Sep 2016  Jan-Sep 2015  Change, %  Q3 2016  Q3 2015  Full Year 2015 
Order   bookings 14,960  62,599  -76  3,498  43,603  81,175 
Order   backlog 109,521  105,486  113,834 
Sales 19,615  17,116  15  5,761  5,787  27,186 
Gross   income  4,432  3,956  12  1,352  1,282  6,486 
Gross   margin, %  22.6  23.1     23.5  22.2  23.9 
EBITDA  1,537  1,259  22   462  429  2,859 
EBITDA   margin, %  7.8  7.4     8.0  7.4  10.5 
Operating   income (EBIT)  837  553  51  226  186  1,900 
Operating   margin, %  4.3  3.2  3.9  3.2  7.0 
Net income  536  293  83  122  36  1,402 
Earnings per share after dilution, SEK  4.76  2.45  1.06  0.24  12.79 
Return   on equity, %*  13.8  7.8  11.5 
Operational   cash flow 1,922  -1,153  -2,271  653 -500 
Free   cash flow   1,740  -1,595  -2,311  487  -726 
Free cash flow per share after dilution, SEK  16.28  -14.99  -21.59  4.57  -6.82 
* Return on   equity is measured over a rolling 12- month period.           

For more information and explanations regarding the usage of these key ratios, please see 

Press and analyst meeting

Saab invites to a press and analyst meeting, where CEO Håkan Buskhe and CFO Magnus Örnberg present the Saab January-September interim report 2016. 

Date: Tuesday, 25 October at 10:00 (CET)
Address: Grand Hôtel, Blasieholmshamnen 8, Stockholm, Sweden
Venue: New York

You are welcome to participate on site at Grand Hôtel, watch the live webcast or dial in to the conference call. It is possible to post questions also over the web and conference call.

Live webcast: 

Conference call:
Please, dial in using one of the numbers below:
UK: +44 2030089801
US: +1 6465025116
Sweden: +46 8 56642666

The interim report, the presentation material and the webcast will be available on  

Tel: +46 8 463 02 45

For further information, please contact:
Saab Press Centre,
+46 (0)734 180 018,

Saab Investor Relations, Ann-Sofi Jönsson, +46 (0) 734 187 214 
Follow us on Twitter: @saab 

Saab serves the global market with world-leading products, services and solutions within military defence and civil security. Saab has operations and employees on all continents around the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technology to meet customers’ changing needs. 

This information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 25 October 2016 at 07.30 (CET).