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Saab Reports Record 2025 Orders and Upgrades Growth Targets

Saab achieved record 2025 order bookings, raising growth targets with major contracts in Colombia, France, and Sweden boosting backlog to SEK 275 billion.

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This article is based on an official press release from Saab.

Saab Reports Historic 2025 Results: Record Orders Drive Growth Target Upgrade

Swedish defense and security company Saab has released its Year-End Report for 2025, detailing a historic period of financial performance driven by heightened global geopolitical tensions and a surge in European defense spending. According to the company’s official figures, Saab secured record-breaking orders in the fourth quarter alone, prompting management to significantly upgrade its medium-term growth targets for the 2023–2027 period.

The report highlights a dramatic increase in demand across Saab’s portfolio, ranging from advanced fighter jets to naval systems and surveillance solutions. With a total order backlog now reaching SEK 275 billion, the company is positioning itself to meet sustained demand through the latter half of the decade. In a statement accompanying the release, Saab President and CEO Micael Johansson emphasized the company’s strong execution during a volatile year.

“2025 was a record year for Saab… We have had much stronger sales for the first three years of the target range and for the remaining two years this implies an average growth of around 20% per year.”

, Micael Johansson, President and CEO of Saab

Financial Highlights and Record Bookings

The fourth quarter of 2025 proved to be a pivotal period for the company. According to the financial results, Saab recorded SEK 100.1 billion in order bookings during Q4, contributing to a full-year total of SEK 168.5 billion, a 74% increase year-over-year. This surge has pushed the company’s total order backlog to SEK 275 billion, providing significant revenue visibility for the coming years.

Key financial metrics for the full year 2025 include:

  • Sales Revenue: SEK 79.1 billion (up 24%).
  • Operating Income (EBIT): SEK 8.1 billion (up 42%), with a margin of 10.2%.
  • Net Income: SEK 6.4 billion (up 51%).
  • Proposed Dividend: SEK 2.40 per share, an increase from SEK 2.00 the previous year.

Based on these results, Saab has revised its organic sales growth target. The company now aims for a compound annual growth rate (CAGR) of approximately 22% for the period 2023–2027, an upgrade from the previous target of roughly 18%.

Strategic Wins: The “Mega-Deals”

The massive influx of orders in late 2025 was driven by three major strategic contracts that validate Saab’s technology across air, sea, and surveillance domains. The press release and subsequent reporting highlight the following key agreements:

Colombia Selects Gripen

In a significant export victory, the Colombian government selected the Gripen E/F fighter system. The contract, valued at approximately EUR 3.1 billion (SEK 35 billion), covers the delivery of 17 aircraft. This deal establishes a long-term strategic partnership in South America and marks a successful expansion of the Gripen program against international competitors.

Surveillance and Naval Dominance

Saab also secured a breakthrough in the European NATO market with an order from France for two GlobalEye Airborne Early Warning & Control (AEW&C) aircraft, valued at SEK 12.3 billion. Additionally, the Swedish Defence Materiel Administration (FMV) awarded Saab a SEK 9.6 billion contract to complete and deliver two Blekinge-class (A26) submarines, ensuring the modernization of Sweden’s underwater capabilities through the 2030s.

AirPro News analysis

While the operational numbers are undeniably strong, the market reaction suggests a complex investment landscape. Despite beating expectations on earnings and revenue, Saab’s share price saw a slight decline immediately following the report. This “sell the news” reaction likely indicates that investors had already priced in a perfect execution scenario given the known geopolitical tailwinds.

Furthermore, the upgrade in growth targets to ~22% CAGR signals management’s confidence that the current “defense boom” is not a temporary spike but a structural shift in European security architecture. The success of the GlobalEye in France is particularly noteworthy; it represents a shift toward European strategic autonomy, where major NATO powers are increasingly opting for continental solutions over non-European alternatives. The challenge for Saab now shifts from winning orders to industrial execution, specifically, managing supply chains and expanding workforce capacity to deliver on a SEK 275 billion backlog.

Sustainability and Future Outlook

Beyond financial metrics, Saab reported progress on its sustainability goals. The company achieved a 7% reduction in CO2 emissions year-over-year, remaining on track for its 2030 target of a 42% reduction. Looking ahead to 2026, the company stated it is heavily investing in capacity expansion, including new production facilities in the United States, Sweden, and India.

CEO Micael Johansson noted that while the geopolitical landscape remains uncertain, this instability is driving a sustained global demand for deterrence capabilities. The company’s focus will now prioritize the efficient conversion of its record backlog into delivered systems.

Sources

Photo Credit: Christopher Pike – Reuters

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Defense & Military

HAL and Safran Sign Aravalli Engine Co-Development Contract

HAL and Safran finalize the Aravalli engine contract via SAFHAL JV to power India’s IMRH and DBMRH helicopters by 2032-2033.

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Hindustan Aeronautics Limited (HAL) and Safran Helicopter Engines have finalized a contract to co-develop the new-generation Aravalli engine, marking a definitive shift in Indian aerospace manufacturing from licensed production to indigenous propulsion design.

The agreement, signed on August 26, 2026, in Bengaluru, India, formalizes the design, development, manufacture, and lifecycle support of the engine through SAFHAL Helicopter Engines Pvt. Ltd. SAFHAL is a 50:50 joint venture between the two aerospace manufacturers. The Aravalli engine is slated to power India’s future 13-ton Indian Multi-Role Helicopter (IMRH) and its naval variant, the Deck-Based Multi-Role Helicopter (DBMRH).

Technical specifications and manufacturing

The Aravalli engine will operate in the 3,500 to 4,000 shaft horsepower (shp) class. Under the terms of the agreement, HAL will gain access to core engine technologies, including the high-pressure compressor, power turbine, and accessory gearbox. This technology transfer is designed to build domestic intellectual property and expertise in high-power engine design.

Manufacturing operations for the Aravalli program will be based at HAL’s facility in Tumakuru, Karnataka. Safran Helicopter Engines Chief Executive Officer Cédric Goubet noted the precedent set by the agreement in a press release issued by HAL.

“This is the first time Safran HE has taken up such a class of engine as co-development. The Aravalli engine programme represents a new chapter in the strategic relationship between France and India, combining the expertise of our teams to develop propulsion systems for future Indian rotorcraft.”

Development timeline and strategic shift

The final contract follows a multi-year negotiation and planning phase. HAL and Safran initially signed a Memorandum of Understanding for the project in July 2022, followed by detailed workshare discussions at Aero India in February 2023. The companies executed an airframer contract on August 30, 2024, to commence joint design work.

The design and development phase is targeted for completion between 2032 and 2033. Once operational, the IMRH platform is intended to replace the Indian Air Force’s aging fleet of Mil Mi-17 Helicopters. HAL Chairman and Managing Director Ravi K emphasized the domestic industrial impact of the program.

“The signing of this contract marks a significant step forward in India’s pursuit of self-reliance in aero-engine technologies. Through this collaborative programme with SAFHAL and Safran Helicopter Engines, we are creating a strong foundation for powering next-generation Indian helicopter platforms.”

AirPro News analysis

The Aravalli engine contract represents a critical maturation point for India’s defense aviation sector. Historically, Indian aerospace manufacturing has relied heavily on licensed production of foreign designs, which limits domestic engineering capability and intellectual property ownership. By securing a 50:50 co-development structure that includes core engine components like the high-pressure compressor and power turbine, we view this agreement as a foundational step toward true Propulsion independence for the Indian military. If the 2032 to 2033 development timeline holds, HAL will be positioned not just as an assembler, but as a primary original equipment Manufacturers (OEMs) for high-power rotorcraft engines.

Sources: Hindustan Aeronautics Limited

Photo Credit: Hindustan Aeronautics Limited

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Raytheon Wins $603M Contract for B-52H Radar Modernization

Raytheon secures $603M USAF contract to produce the AN/APQ-188 AESA radar for the B-52H fleet under the B-52 Radar Modernization Program.

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This is a developing story. Information may change as official details are released.

Raytheon has secured a $603,000,000 sole-source contract from the U.S. Air Force (USAF) to produce and sustain the new AN/APQ-188 radar for the Boeing B-52H Stratofortress fleet, advancing a critical modernization effort despite the recent loss of the program’s primary test aircraft.

The U.S. Department of Defense announced the indefinite-delivery/indefinite-quantity (IDIQ) contract on August 25, 2026, following the official award on August 21, 2026. The agreement establishes the ceiling value for the production phase of the B-52 Radar Modernization Program (RMP). The Air Force Life Cycle Management Center (AFLCMC) at Wright-Patterson Air Force Base (FFO) in Ohio is the contracting activity, obligating $46,008,396 in fiscal 2026 aircraft procurement funds with the initial delivery order.

Upgrading the B-52 radar capabilities

The RMP replaces the bomber’s 1960s-era mechanically scanned AN/APQ-166 radar with the Raytheon AN/APQ-188, an Active Electronically Scanned Array (AESA) system. The new Radar-Systems is a derivative of the AN/APG-79 used on the F/A-18 and forms a cornerstone of the broader B-52J upgrade package designed to keep the fleet operational into the 2050s.

According to the Department of Defense, Raytheon will perform the contract work across multiple facilities, including Forrest, Mississippi; El Segundo, California; McKinney, Texas; and Warner Robins, Georgia. The contract is expected to be completed by August 20, 2031.

Program continuity following testbed loss

The production contract award follows a major setback for the RMP during the flight testing phase. On June 15, 2026, the sole B-52 radar testbed aircraft crashed shortly after takeoff at Edwards Air Force Base (EDW) in California. The USAF confirmed the accident resulted in the deaths of all eight crew members on board, which included military personnel, government civilians, and contractors. The official cause of the accident remains under Investigation by the USAF.

Despite the loss of the initial testbed, military officials have confirmed the modernization program will proceed. According to reporting by DefenseScoop, Col. Spencer Turner, the B-52 System Program Manager, stated that the original acquisition strategy always included two test aircraft.

Turner confirmed that work on the second aircraft is actively underway at The Boeing Company facility in San Antonio, Texas. He noted that the service expects to “complete the full modification and put the full radar suite onto the aircraft this year and proceed with testing.” Following the June 15, 2026 accident, the active USAF fleet stands at 75 B-52H bombers.

AirPro News analysis

The decision to award a $603,000,000 production contract just two months after the loss of the primary testbed underscores the firm commitment of the USAF to the B-52J upgrade timeline. Because the AN/APQ-188 is heavily derived from an existing, mature AESA system, the service likely views the radar technology itself as low-risk, separating the radar’s production readiness from the ongoing investigation into the June 15 accident. We note that delaying the production contract until a second testbed completes flight trials would have likely pushed the B-52J initial operational capability timeline to the right, a delay the USAF appears unwilling to accept as it plans to operate the airframe for another three decades.

Sources: U.S. Department of Defense

Photo Credit: US Air Force

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Defense & Military

TUSAŞ ŞİMŞEK-K Completes First RATO Ground Launch

Turkish Aerospace’s ŞİMÅžEK-K UAV completed its first rocket-assisted ground launch and live warhead strike test in August 2025.

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Turkish Aerospace (TUSAŞ) has successfully conducted the first ground launch of its ŞİMŞEK-K unmanned aerial vehicle using a rocket-assisted take-off system, culminating in a live warhead strike on a ground target.

The test, announced by the Defence Industry Agency of Türkiye (SSB) on August 22, 2025, and detailed in an August 25 press release, confirms the platform’s transition from a pure training target into a dual-role tactical strike asset. The integration of a rocket-assisted take-off (RATO) system eliminates the drone’s previous reliance on catapult infrastructure or aerial carrier launches from larger platforms such as the Anka Unmanned Aerial Vehicle.

Technical specifications and operational capabilities

The ŞİMŞEK-K measures 2.4 meters in length with a 1.5-meter wingspan and a maximum take-off weight of 83 kilograms. It can carry a payload of up to 18 kilograms, which now includes a live warhead for one-way strike missions.

The drone operates at a maximum speed of Mach 0.63 and can reach altitudes up to 25,000 feet. Powered by a 35-liter fuel capacity, the system offers an endurance exceeding 45 minutes. It maintains a datalink range of 150 kilometers and features a total operational range of more than 500 kilometers.

Strategic shift in Turkish unmanned systems

The successful RATO launch and strike test marks a deliberate shift in how Turkish defense contractors are utilizing existing airframes. SSB President Haluk Görgün highlighted the strategic value of the test.

“Our defense industry has added another one to its critical capabilities. This step is a concrete indicator of technologies developed entirely with national resources, increasing our operational flexibility and strengthening our deterrence.”

TUSAÅž CEO Mehmet DemiroÄŸlu echoed this sentiment, emphasizing the engineering progress required to integrate the RATO system.

“We have left behind another milestone in our defense industry. ŞİMÅžEK K, produced with national resources, took off from the ground for the first time with a rocket-assisted take-off system (RATO). This new capability gained by ŞİMÅžEK K clearly reveals the level reached by our national engineering.”

The ŞİMÅžEK family has evolved significantly since the original target drone’s maiden flight on August 4, 2012. The ŞİMÅžEK-K variant was introduced to the public in July 2025 at the IDEF exhibition in Istanbul. TUSAÅž continues to expand its kamikaze UAV portfolio and is currently developing a dedicated jet-powered one-way strike UAV named AYAZ, which is scheduled to be unveiled at the SAHA EXPO in May 2026.

AirPro News analysis

We view the integration of RATO capabilities into the ŞİMŞEK-K as a highly practical evolution of an existing airframe. By removing the need for bulky catapult infrastructure or a larger carrier aircraft like the Anka, TUSAŞ has created a rapidly deployable asset suitable for asymmetric warfare environments. Converting legacy target drones into loitering munitions or one-way strike platforms is a growing industry trend, allowing manufacturers to leverage proven aerodynamics and existing production lines to field tactical weapons quickly and cost-effectively.

Sources: Turkish Aerospace

Photo Credit: Turkish Aerospace

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