Saab ended the third quarter of 2026 with a record order backlog of SEK 364.2 billion (US$36.8 billion), an 80% increase from SEK 202.4 billion a year earlier, after several major defense contracts sharply expanded its future workload.
The Swedish aerospace and defense group booked SEK 65.8 billion (US$6.6 billion) in new orders during the quarter, more than triple the SEK 20.9 billion recorded in the same period of 2025. The resulting book-to-bill ratio reached 3.2.
The largest individual contract was for 16 Saab Gripen E fighters for Ukraine, valued at SEK 24.6 billion (US$2.5 billion). The deal alone accounted for about 37% of all orders received by Saab during the quarter.
Other major awards included SEK 10.1 billion (US$1.0 billion) for two GlobalEye airborne early warning and control aircraft for an undisclosed customer and SEK 8.7 billion (US$880 million) for systems for four new German Navy frigates.
Follow Air Data News: WhatsApp | Instagram | LinkedIn | Twitter | Facebook
The increase in orders was substantially greater than Saab’s growth in current business, indicating how much of the improvement will feed results in future years rather than immediately.
Growth yet to reach sales
Third-quarter sales rose 29.5% to SEK 20.6 billion (US$2.1 billion), with organic growth of 30.6%. Operating income, or EBIT, increased 42% to SEK 1.95 billion (US$197 million), while net income climbed 47% to SEK 1.43 billion (US$145 million).
Saab attributed the sales increase to higher delivery volumes and progress across its programs, particularly in its Surveillance and Naval businesses. The company said the improvement in operating income came from Surveillance and Aeronautics.
The distinction is particularly visible in Aeronautics. The business area received SEK 28.8 billion in orders during the quarter, of which approximately 85% came from the Ukrainian Gripen contract. Its backlog reached SEK 102.5 billion.
Aeronautics sales, however, increased by a more modest 9% from a year earlier to SEK 4.84 billion. Operating income rose 56% to SEK 331 million, with Saab attributing the improvement to project execution and business mix. The T-7 trainer program continued to have a negative impact on the division.
Saab’s overall backlog has also expanded considerably during 2026. It stood at SEK 274.5 billion at the end of last year, meaning the company added almost SEK 90 billion in net contracted work during the first nine months.
Orders received between January and September reached SEK 152.5 billion, up 123% from the same period of 2025. Large contracts accounted for SEK 105.3 billion of that total, more than four times the amount recorded a year earlier.
Production capacity expands
The company is increasing production capacity to accommodate the larger workload, with investments covering Gripen manufacturing, GlobalEye production, missile facilities and naval programs. Capital expenditure has risen as Saab prepares for demand extending well beyond its current deliveries.
Some SEK 102.1 billion of the backlog is scheduled for revenue recognition in 2027, followed by SEK 89.2 billion in 2028 and SEK 62 billion in 2029. Another SEK 83 billion is assigned to periods after 2029.
The Ukrainian Gripen contract illustrates that longer horizon. Saab is scheduled to deliver the 16 fighters to Sweden’s Defence Materiel Administration between 2029 and 2030, meaning one of the largest orders recorded in the third quarter will primarily contribute to the company’s business several years from now.
