Saab Expected to Report Surge in 2023 Revenue

Saab (STO: SAAB B), the Sweden-based defense manufacturer, is poised to report substantial revenue growth in 2023, with total revenue expected to jump +22% year over year, reaching Skr51.4 billion. Analysts expect sustained high order activity in 2023, with the order backlog estimated to have surged by +12% year over year.

Across all of Saab’s segments, analysts expect 2023 to have shown strong growth, with the Dynamics and Kockums segments each forecasted to have experience +33% YoY revenue growth, while the Surveillance segment is projected to have seen revenue grow by +27%, Combitech by +15%, and Aeronautics by +8%, according to Visible Alpha consensus. The Dynamics segment particularly stands out, with revenue projected to achieve a CAGR of 16% between 2023 and 2026. In contrast, Saab’s other business segments are expected to register single-digit revenue CAGRs, ranging from 6% to 9%.

Having constituted 19% of the company’s total revenue in 2019, the Dynamics segment is poised to contribute significantly, accounting for an estimated 27% of the company’s total revenue by 2026. This segment also remains more profitable relative to the company’s other segments, with an estimated operating margin of 13.4% in 2023. Saab is slated to report its full-year earnings on February 9, 2024.

Sector: Industrials
Industry: Aerospace & Defense
VA Ticker(s): SAABB_SE