Sabog confirmed performance expectations, but warned of parts supply shortages.
Defense company Saab has confirmed its mid-term growth expectations, as demand remains strong, but warned of tightening supply of components. Saab stated that the global security situation remains highly uncertain, including ongoing conflicts between Russia and Ukraine and in various parts of the Middle East. CEO Micael Johansson said, "Demand for advanced defense solutions continues to rise, and our leading product portfolio aligns well with the priorities of countries around the world." The company reported that market conditions remain favorable, with double-digit sales growth in all business areas in the quarter. However, the company noted that its operating supply environment is constrained and continues to take proactive measures to ensure critical supply, including selectively stockpiling components and closely collaborating with suppliers to ensure deliveries. The company still expects organic sales to grow by approximately 22% between 2023 and 2027, with profit growth outpacing sales growth and cumulative cash conversion exceeding 60%.
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