Saab results January-June 2021: Strong sales growth and positive cash flow


Saab presents results for January-June 2021.

Highlights Q2 2021

  • Orders increased by 7% and the order book amounted to 96.7 billion Swedish kronor.
  • Organic sales growth of 15% driven by high project activity and deliveries.
  • EBITDA increased by 19% to reach SEK 1,196m (1,004), i.e. a margin of 11.8% (11.4).
  • The operating result improved by 10% and amounted to SEK 715m (652), corresponding to a margin of 7.1% (7.4), including the costs of the resizing measures of 85 million Swedish kronor.
  • The operating cash flow was 3,152m SEK (1,817) due to significant milestone payments received during the quarter.
  • New organizational structure including the Operational Excellence function effective from July 1, 2021.
  • Changed outlook: organic sales growth for full year 2021 at around 10% (previous outlook was organic sales growth in line with long-term target of 5%).

Declaration of Micael johansson, President and CEO, Saab:

Strong sales growth and positive cash flow

Activity in the defense market remained favorable in the second quarter and demand in our main markets remained good. This benefits Saab’s growth both internationally and Sweden, supporting our multi-domestic strategy.

During the quarter, orders continued to grow and increased by 7%, amounting to SEK 9.9 billion.

We got a Future development and support contract for the Swedish Gripen C / D and orders for training solutions for the Netherlands and for the United States Marine Corps. We have also received orders for radar components for the G / ATOR system in the we, a Helicopter 15 support contract with Sweden and a contract for radar warning equipment for the German Tornado aircraft. Our strong order book now stands at 97 billion Swedish kronor, a good contributor to future sales growth.

Organic sales increased 15% in the quarter thanks to a high level of activity and deliveries in our defense projects. The civil aviation activity continues to record a decline in its sales. Five of the six business areas showed improved volumes. In the first half of the year, we recorded organic sales growth of 15%. Combined with our strong order book for this year, we are now increasing our prospects for organic sales growth in 2021 to around 10%.

Strong sales for the quarter positively contributed to earnings and EBITDA increased 19%, which translates to a margin of 11.8% (11.4). The operating result increased by 10% and was SEK 715 million (652), with a margin of 7.1% (7.4). This includes resizing measures since the closure of our Barracuda plant in the we and the adjusted capacity in our operations in South Africa. These measures had a negative impact on the operating result of 85 million Swedish kronor, corresponding to 0.8% impact on the margin. We reiterate our EBIT margin outlook for 2021.

From 1st of July, our new organization, where six professions become four, and the new Operational Excellence function, have come into force. The objective is to improve the efficiency of our activity by removing internal interfaces, to generate synergies in operations and to improve interaction with customers.

The uncertainty of the pandemic, along with ongoing travel and other restrictions, continue to impact predictability. It also has an impact on some areas of the supply chain, however, we continue to have a close dialogue with our suppliers to mitigate the effects.

The operating cash flow for the quarter improved considerably and amounted to 3.2 billion Swedish kronor (1.8). The majority of this year’s significant milestone payments were received in the first half of the year. We reiterate the outlook for positive operating cash flow for the full year.

A commitment to society has been at the heart of Saab’s business since its founding, helping nations keep people and society safe. In our commitment to contribute to a sustainable society, we also actively work to reduce the environmental impact of our operations, value chain and products.

During the first half of the year, a group-wide project to identify and prioritize climate-related risks and opportunities was carried out, through the Climate-Related Financial Reporting Working Group (TCFD). In addition, in collaboration with Swedish industry, a concept of flexible production and resilience was presented to better prepare Sweden for the next crisis.

To visualize our progress in our sustainability work, in this interim report we have started to describe our progress in sustainability. I have no doubts that Saab is well positioned in its quest to create long-term sustainable value for all of our stakeholders and for society as a whole.

Financial Highlights

MEEK Jan-June 2021 Jan-june 2020 Switch, % Q2 2021 Q2 2020 Switch, % Full year 2020
Order reservations 15,746 14,070 12 9 875 9,247 7 42,328
Backlog 96 714 90,458 7 99 816
Sales 19 219 16 876 14 10 131 8 836 15 35,431
Gross revenue 4,047 3,711 9 2,113 1,831 15 5 676
Gross margin, % 21.1 22.0 20.9 20.7 16.0
EBITDA 2 262 1,918 18 1,196 1004 19 2,833
EBITDA margin,% 11.8 11.4 118 11.4 8.0
Operating result (EBIT) 1312 1212 8 715 652 ten 1315
Operating margin,% 6.8 7.2 7.1 7.4 3.7
Net revenue 910 860 6 514 518 -1 1,092
of which shareholder participation of the Parent Company 897 855 5 505 521 -3 1,073
Earnings per share after dilution, SEK 6.73 6.40 3.78 3.90 8.01
Return on equity,% ¹⁾ 5.2 10.0 5.1
Operating cash flow 2 992 235 3 152 1,817 2,773
Free movement of capital 2,763 22 3,028 1,722 3 753
Diluted free cash flow per share, SEK 20.72 0.16 22.69 12.89 28.03
Average number of shares after dilution 133 351 912 133 690 023 133,446,047 133 625 118 133 877 141
¹⁾ Return on equity is measured over a rolling 12-month period.

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

Saab Interim Report January-June 2021 Presentation

CEO and Chairman of Saab Micael johansson and CFO and Deputy CEO Christian Luiga will present the Saab interim report for January-June 2021.

Dated: Wednesday July 21 at 10:00 a.m. (CET).

The report is published on 07:30 (CET) the same day on

You can watch the live webcast or join the conference call. Questions can be asked by conference call and on the web.

Live webcast:

Conference call:

Please login using one of the numbers below.

Sweden (Switzerland): +46 856642704

UK: +44 3333009273

United States: +1 6467224956

The interim report, presentation material and webcast will be available at

For more information, please contact:

Mattias Rådström, Head of Media Relations

+46 (0) 734 180 018

[email protected]

Merton kaplan, Head of Investor Relations

+46 (0) 734 182 071

[email protected]

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Saab serves the global market with leading products, services and solutions in the fields of military defense and civil security. Saab has operations and employees on all continents of the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technologies to meet changing customer needs.

The information is such as Saab AB is required to make public in accordance with the EU Market Abuse Regulation. The information has been submitted for publication, through the contact person indicated above, on July 21, 2021 at 07:30 am (CET).,c3387666,c2937513

(c) Decision 2021. All rights reserved., source Press Releases – English


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