Saab is staying active, as expected. Q4 is seasonally strong in orders and deliveries, and the company continues to fill its European order book, much to the market’s delight.
On Monday, Saab announced a third MSHORAD (Mobile Short-Range Air Defense) battery for Lithuania, a ~1.4 BSEK order for deliveries in 2026-30. The system combines Giraffe 1X radar and RBS 70 NG effectors on Oshkosh JLTVs (Joint Light Tactical Vehicles), plugging into its GBAD (ground-based air defense) C2 (command and control) architecture, providing the Lithuanian Army with more mobile, networkable short-range air defense capacity. Fundamentally, the contract is small against Dynamics’ ~90 BSEK backlog and ~18 BSEK LTM revenue. However, it is another data point that Saab’s short-range air defense offering is competitive and that Baltic needs for ground-based air defense are translating into real orders. We keep our estimates unchanged, but see the order as supportive for Dynamics’ medium-term growth case and for Saab’s ability to convert the current security environment into a thicker, more diversified backlog.
Today, Saab also announced its first live training order from the Spanish Army under a framework agreement with a maximum value of ~34 MEUR (~400 MSEK). The initial contract covers Individual Duel Simulation systems from its GAMER (Gunnery & Maneuver Exercise) family, delivered with local partner Tecnobit. Financially, this is small for Dynamics and even smaller in a group context than the Lithuanian MSHORAD deal, given its ~72 BSEK LTM revenue and ~200 BSEK backlog; it does not move our estimates. Strategically, however, Spain is a useful reference customer for Dynamics’ Training and Simulation business, as the systems can scale from small unit training to larger multinational exercises, strengthening Saab’s position in European land forces’ training infrastructure.
In addition to recent larger developments in Kockums and Aeronautics, these two contracts exemplify how Saab adds smaller, recurring pieces to a growing European defense footprint, even when headline numbers are not large enough to distinctly affect fundamentals on their own.