Swedish defence group Saab reported a significant increase in quarterly earnings and record sales, driven by heightened geopolitical tensions and uncertainties that have prompted European countries to strengthen their defence capabilities. However, the company acknowledges that these uncertainties, including potential impacts from US President Donald Trump's tariff policies, pose challenges and complicate future predictions.

Saab, known for manufacturing the Gripen jet fighter, combat weapons systems, and submarines, has benefited from the surge in military budgets among European nations following Russia's invasion of Ukraine in 2022. Furthermore, Trump's pressure on NATO members to increase defence spending to five percent of GDP, with threats to withhold protection for non-compliant countries, has added to the impetus for defence investment.

In the first quarter, Saab's net profit soared by 53 percent year-over-year, reaching 1.2 billion kronor ($124 million). The operating profit also saw a substantial increase of 22 percent, climbing to 1.5 billion kronor, marking its strongest first-quarter operating profit to date.

Saab chief executive Micael Johansson emphasized the critical need for a robust European defence industry with enhanced collective capacity and capabilities, driven by rapid changes in the global geopolitical landscape. He noted that the renewed focus on a capable European industrial-defence base has created a new market reality that Saab is adapting to, despite the time lag between political decisions and defence acquisitions.

The company reported record sales of 15.8 billion kronor, an 11 percent increase from the previous year, and anticipates organic sales growth of between 12-16 percent for 2025. Order intake also rose to 19.1 billion kronor from 18.5 billion kronor year-over-year, boosted by small and medium-sized orders, including two large orders from Latvia and Germany.