SaabSAAB B

Saab had revenue of SEK 79.1bn in 2025. That is 17% more a year since 2020.

Revenue comes from large contracts that run for many years and are booked as the work is done. The order book therefore shows sales several years ahead. Investment in new capacity is heavy right now, which holds back free cash flow.

Revenue from the group income statement in the annual report (ESEF). Growth is the average annual change.

Of every 100 in sales, 10 became operating profit in 2025. Over the period it has ranged from 4 to 10.

On average, 266% of profit arrived as cash over the period.

Operating margin = operating profit divided by revenue. Cash conversion = cash flow from operations divided by net profit.

Earnings per share went from SEK 2.02 in 2020 to SEK 11.77 in 2025. Dividends took 25% of owner earnings over the last 5 years.

The share count has risen 0.2% a year, so each share owns a little less of the company every year.

Owner earnings = cash flow from operations, minus investment in tangible and intangible assets, minus lease repayments. Share count is derived as net profit divided by earnings per share.

Return on capital employed was 16% after tax in 2025. Net cash of SEK 4.0bn.

Return on capital employed has ranged from 16% to 16% after tax over the period.

Saab had net liquidity of SEK 4.0bn at the end of 2025, on its own measure. It has since risen to SEK 8.7bn after large advance payments on new orders.

Return on capital employed = operating profit after 20.6% Swedish tax, divided by equity plus net debt at year end.

Today's price needs owner earnings to grow 28% a year for ten years. Revenue has grown 17% a year.

Market value SEK 347bn, enterprise value SEK 343bn. Base: owner earnings of SEK 3.2bn a year on average over the last three years, an owner earnings yield of 0.9%.

Reverse discounted cash flow. Enterprise value = market value plus net debt. The base is average owner earnings over the last three years. Required return 9%, 10 years, then 2.5% growth.