Saab AB (SAABF), the prominent Swedish defense and security firm, has announced a noteworthy increase in net income for the fourth quarter, fueled by robust sales growth. Moreover, the company has enhanced its dividend and raised its mid-term outlook.
Currently, Saab's shares are trading at SEK 218.60, reflecting an increase of 3.93% on the Stockholm Stock Exchange.
In the fourth quarter, the company reported a rise in net income to SEK 1.44 billion, up from SEK 1.25 billion in the same quarter the previous year. Earnings per share similarly climbed to SEK 2.68 from SEK 2.27 year-over-year.
EBITDA also saw a substantial rise, reaching SEK 2.73 billion from the previous year's SEK 2.03 billion, with the EBITDA margin increasing to 13.1% from 12.6%. Net sales experienced significant growth, reaching SEK 20.85 billion compared to SEK 16.12 billion in the same period last year. Organic growth was recorded at 29%, propelled by all business areas.
Furthermore, the Board has proposed a 2024 dividend of SEK 2.00 per share, up from SEK 1.60 per share last year.
Looking forward, for fiscal 2025, Saab anticipates organic sales growth within the range of 12% to 16%, accompanied by EBIT growth surpassing the organic sales growth.
For the medium term from 2023 to 2027, the company has revised its organic sales growth compound annual growth rate (CAGR) target to approximately 18%, compared to the earlier forecast of around 15% CAGR. Saab also foresees EBIT growth exceeding the rate of organic sales growth for this period.
