Saab Secures Ukraine Mega-Deal and Hungary Milestone While Stretching Production to the Limit
Published on 06/24/2026 at 17:49 | Redaktion boerse-global.de
The Swedish defence group has inked one of its largest-ever fighter jet orders while simultaneously closing out a delivery programme from last year, yet investors remain unconvinced. Saab will supply Ukraine with 36 Gripen combat aircraft, 16 drawn from existing stocks and 20 newly built, forcing a rapid expansion of manufacturing capacity.
Chief executive Micael Johansson is ramping up output to as many as 30 jets annually within twelve months, with a longer-term target of almost 40. Assembly lines in Sweden and Brazil are being extended to handle the extra workload. The deal follows the completion of a separate contract for Hungary, where the final two Gripens touched down at Kecskemét air base, bringing Budapest’s fleet to 18 aircraft — a mix of single-seaters and two twin-seaters based on a contract amendment signed in January 2024.
Beyond the hardware, Saab is pouring resources into software-defined warfare. The company paid €11.1 million for a 10% stake in Parisian start-up Comand AI, whose military-grade artificial intelligence will be integrated into Saab’s surveillance systems, most notably the GlobalEye airborne early warning platform. The aim is to create a next-generation networked command centre. Separately, at the Eurosatory defence exhibition, the group unveiled a new mobile radar, the Giraffe AMB D, which is software-based and considerably more compact than its predecessors.
Should investors sell immediately? Or is it worth buying Saab?
The order book stood at a hefty 274 billion Swedish kronor at the end of March, underpinning a first quarter in which organic revenue surged almost 24%. Saab’s dynamics and surveillance divisions are absorbing heavy development costs from programmes such as the T-7 trainer that continue to drag on margins in the aeronautics unit. The company is valued at roughly 267 billion kronor on the Stockholm exchange, with shares trading around the 505-510 kronor level.
Analysts see fair value exactly in that range, and the lack of upside stems from a capacity crunch on the factory floor. Saab is running at full tilt, and delivery bottlenecks are capping near-term earnings potential. The management team is due to address these issues at a Jefferies investor conference later today, where detailed growth targets for the coming years and the integration of the newly acquired marine division are expected to be laid out.
The political tailwind remains powerful. Sweden’s Defence Commission continues to rate the Nordic security situation as grave, and European nations are racing to rearm. Saab’s organic growth trajectory looks secure as long as that trend holds, but until the production lines can keep pace with demand, the share price may struggle to break out of its current rut.
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