Saab AB (OTC: SAABF) is a Swedish defense and aerospace company that provides military and civil security products. Ahead of its quarterly earnings report on July 17, 2026, Wall Street analysts set high expectations for the defense stock. The earnings per share (EPS) estimate was $0.35, with revenue projected to be around $2.46 billion.
Saab surpassed these expectations, reporting strong second-quarter financial results. As highlighted by Reuters, the company announced a bigger-than-expected increase in its operating earnings. This performance was driven by booming demand across its main markets, which resulted in a significant rise in both sales and order bookings for the aerospace company.
The company achieved record new orders totaling 68.4 billion Swedish crowns, or about $7.1 billion. This figure was well above FactSet's estimate of 57.1 billion crowns and included a large Polish submarine deal. Consequently, Saab's total order backlog swelled to 317.7 billion crowns, marking continued growth in its defense and security portfolio.
This robust performance is linked to higher defense spending by European governments, as highlighted by CNBC. This trend is driven by regional security concerns and calls for nations to increase defense responsibility. A company statement noted, "We operate in a market with structurally growing demand..."
Regarding its financial health, Saab has a debt-to-equity ratio of 0.32, indicating it has more owner's investment than debt. Its current ratio of 1.28 shows a solid ability to cover its short-term bills. The stock's valuation includes a price-to-earnings ratio of 42.88 and a price-to-sales ratio of 3.32.
