SAAB

Earnings Release • Jul 18, 2025

Accelerating growth and strengthening our market position

Product image: GlobalEye

April-June 2025

Key Highlights

• Order intake for the second quarter amounted to SEK 28,403m (39,574), driven by strong growth in small and medium-sized orders.
• Sales in the quarter amounted to SEK 19,786m (15,170) and corresponded to an organic sales growth of 32% (21).
• All business areas reported sales growth, with particularly strong growth in Dynamics of 73% in the quarter.
• EBITDA amounted to SEK 2,831m (1,961) and corresponded to an EBITDA margin of 14.3% (12.9) in the quarter.
• EBIT increased 49% and amounted to SEK 1,977m (1,331), corresponding to a margin of 10.0% (8.8). In the quarter, a non-recurring contribution of SEK 105m in the minority portfolio had a positive effect on EBIT.
• Net income increased to SEK 1,536m (1,012) and earnings per share amounted to SEK 2.83 (1.85), an increase of 53%.
• Operational cash flow amounted to SEK -1,136m (-2,251), and mainly reflected continued investments for capacity build-up.
• Net liquidity position was SEK 690m (-2,354) at the end of the period.
• Outlook for 2025: organic sales growth between 16-20%, compared to previous organic sales growth between 12-16%. Reiterating EBIT growth higher than the organic sales growth and positive operational cash flow for the full year.

3 2 %

Organic sales g rowth

10 %

Operating margin

Financial highlights

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024	Change, %	Full Year 2024
Order bookings	47,547	58,069	-18	28,403	39,574	-28	96,798
Order backlog	197,552	182,721	8				187,223
Sales	35,578	29,355	21	19,786	15,170	30	63,751
Gross income	7,975	6,465	23	4,256	3,380	26	13,663
Gross margin, %	22.4	22.0		21.5	22.3		21.4
EBITDA	4,971	3,780	31	2,831	1,961	44	8,402
EBITDA margin, %	14.0	12.9		14.3	12.9		13.2
Operating income (EBIT)	3,431	2,522	36	1,977	1,331	49	5,662
Operating margin, %	9.6	8.6		10.0	8.8		8.9
Net income	2,813	1,796	57	1,536	1,012	52	4,210
of which Parent Company's shareholders' interest	2,797	1,770	58	1,529	1,000	53	4,171
Earnings per share after dilution, SEK ²⁾	5.17	3.28	58	2.83	1.85	53	7.74
Return on equity, % ¹⁾	14.0	11.2					12.4
Operational cash flow	-1,150	-4,249		-1,136	-2,251		2,497
Free cash flow	-1,769	-4,896		-1,322	-2,507		993
Free cash flow per share after dilution, SEK ²⁾	-3.27	-9.08		-2.44	-4.65		1.84
Average number of shares after dilution ²⁾	540,641,009	539,012,716		541,201,620	539,334,622		539,218,308
¹⁾

¹⁾ Return on equity is measured over a rolling 12-month period.

CEO comments

Accelerating growth and strengthening our market position

Micael Johansson

President and CEO

As we conclude the first half of the year, we are navigating in a world where geopolitical tensions have escalated, mainly driven by the conflicts in the Middle East and the ongoing war in Ukraine. Following the NATO summit in June, alliance members have now committed to increase defence expenditures to 5% of GDP by 2035, of which 1.5% of GDP is dedicated for broader defence and security infrastructure investments. In Europe, there is a growing call for unity and cooperation to create deterrence, and in Sweden, a decision has been made to expand defence spending by SEK 300 billion to meet the new NATO targets.

While this will enable significant growth for our industry, the shift from defence planning and policy alignment to procurement takes time. Saab's broad portfolio and ability to deliver leading technologies uniquely positions us to support countries in their capability needs. We are continuing to invest in capacity increases and are proactively working in close cooperation with our suppliers to secure future deliveries.

In the quarter, Saab and the French defence procurement agency, DGA, signed a joint declaration of intent for the potential sale of Saab's GlobalEye aircraft to France. This strategic agreement highlights our advanced AEW&C capabilities and strengthens our collaboration with the French industry, creating new opportunities for the GlobalEye within NATO and with new customers globally.

Interest in the Gripen E/F fighter continued during the quarter, following Thailand's and Colombia's selection of the Gripen system. In addition, we are engaged in several other Gripen campaigns, incuding in Peru and the Philippines, positioning Saab as a key long-term partner in these markets.

To manage the rapid growth and maintain our competitive edge, we are prioritising increased investments in R&D, focusing on new softwaredriven technologies and building an organisation to drive digital transformation. A milestone in this journey was achieved this quarter when Saab successfully conducted the first flight-mission test with an AI-enabled Gripen fighter. Furthermore, following successful capability demonstrations with the Swedish Armed Forces, we secured our first export contract for Saab's Counter Drone (C-UAS) solution. Going forward, we will increase our AI investments, including our participation in the Sweden AI Factory consortium, which will enable the development of new, advanced defence capabilities.

Order bookings in the quarter amounted to SEK 28.4 billion (39.6), driven by small and mediumsized orders. SEK 16 billion, i.e. 57% of the orders, came from our home market, Sweden, which included additional equipment for the Gripen E fighter, the ground-based air defence system RBS 70 NG including missiles and the Giraffe 4A radar system. Furthermore, we strengthened our order backlog in our strategic markets U.S., U.K., and Germany, as well as in other international markets. Our order backlog at the end of the quarter amounted to SEK 197.6 billion (183).

Sales amounted to SEK 19.8 billion (15.2) and increased 32% organically in the quarter. The growth was mainly driven by Dynamics, following an unusually large number of deliveries made in the quarter, but also by Surveillance, which had a high pace in project execution in the quarter.

EBIT for the quarter increased to SEK 2.0 billion (1.3), with an EBIT margin of 10.0% (8.8). The strong profitability was primarily driven by the higher sales and delivery volumes. Additionally, a non-recurring contribution of SEK 105 million in the minority portfolio had a positive effect on EBIT in the quarter.

Operational cash flow in the quarter amounted to SEK -1.1 billion (-2.3) and reflected continued investments, increased working capital for growth, as well as timing of customer payments.

With our delivered year-to-date organic sales growth of 22%, we are now raising our sales growth outlook for the full year 2025. Recognising that we normally have a weaker third quarter, we expect the organic sales growth to be between 16-20% for the full year, up from the previous range of 12-16%. We reiterate our outlook of EBIT growth higher than organic sales growth and our commitment to deliver positive operational cash flow for the full-year.

During the quarter, we continued to make progress on our sustainability journey, including reducing our carbon footprint through enabling access and procurement of sustainable aviation fuel (SAF). The fuel can now be used for most types of aircraft operated by Saab.

Our efforts to make Saab a more sustainable defence company support our mission of keeping people and society safe, and enhances our position as a responsible and attractive employer. This is also evidenced by Universum's 2025 career survey, where Saab was ranked as the "most attractive employer" by engineering students from 34 Swedish universities.

I would like to thank our employees for their hard work and commitment to Saab and welcome our new colleagues as we continue on our growth journey together.

Outlook 2025

Sales growth:

Organic sales growth between 16-20% Previously: Organic sales growth between 12-16%

Operating income:

Operating income growth higher than organic sales growth

Operational cash flow:

Operational cash flow to be positive

Medium-term Targets 2023-2027

Sales growth:

Organic sales growth of around 18% (compound annual growth rate, CAGR)

Operating income:

Operating income growth higher than organic sales growth

Operational cash flow:

Cash conversion of minimum 60% (cumulative for the 5-year period)

Orders

Second quarter 2025

Order bookings in the quarter amounted to SEK 28,403 million (39,574) and corresponded to a book-to-bill of 1.4x. Order bookings increased in several business areas year-over-year and was driven by strong growth in medium and small-sized orders, which amounted to SEK 10,854 million (6,221) and SEK 7,136 million (4,481), respectively. In contrast, large orders declined compared to the same quarter last year, amounting to SEK 10,413 million (28,872). Order bookings in the same period last year included a large Carl-Gustaf system order of SEK 12.9 billion from Poland and a large defence equipment contract of SEK 7.7 billion from an undisclosed customer.

Key large orders during the second quarter included a SEK 2.9 billion contract for additional equipment for the Gripen E to Sweden, a contract for enhanced air defence capabilities for the Visby-class corvettes of SEK 1.6 billion to Sweden, and an order for the mobile short-range air defence solution (MSHORAD) RBS 70 NG including missiles, to Sweden of SEK 1.5 billion.

January-June 2025

Order bookings for the first half-year amounted to SEK 47,547 million (58,069). Small orders increased 46 per cent and amounted to SEK 13,596 million (9,316), medium-sized orders increased by 39 per cent and amounted to SEK 18,251 million (13,133), while large orders decreased by 56 per cent and amounted to SEK 15,700 million (35,620). Order intake growth was particularly strong within Kockums and Aeronautics in the period.

The order backlog amounted to SEK 197,552 million, compared to SEK 187,223 million at the beginning of the year. In total, 71 per cent of the backlog is attributable to international markets, compared to 72 per cent at the end of last year.

Sales

Second quarter 2025

Sales for the second quarter amounted to SEK 19,786 million (15,170), corresponding to a sales growth of 30.4 per cent, with an organic sales growth of 31.5 per cent. All business areas and Combitech reported sales growth, with strong sales contributions from Dynamics. In the quarter, currency translation effects had an unfavourable impact on sales growth of -1.1 per cent.

January-June 2025

Sales for the first half-year amounted to SEK 35,578 million (29,355) corresponding to a sales growth of 21.2 per cent, of which organic growth was 21.9 per cent. All business areas and Combitech contributed to the sales growth.

Sales related to Sweden increased 23 per cent in the period, corresponding to 43 per cent (42) of total sales, whereas sales related to international markets increased 20 per cent. Saab reported sales growth in most regions in the first half-year.

92 per cent (91) of Group sales were related to the defence business.

Sales growth

Per cent	Jan-Jun 2025	Jan-Jun 2024	Q2 2025	Q2 2024	Full Year 2024
Organic sales growth	21.9	22.4	31.5	21.2	23.4
Change from acquisitions and divestments	0.1	0.1	0.0	0.4	0.2
Currency translation effects	-0.8	0.0	-1.1	0.0	-0.1
Total sales growth	21.2	22.5	30.4	21.6	23.5

Sales per region

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %
Sweden	15,145	12,314	23
Rest of Europe	8,233	7,389	11
North America	3,268	3,146	4
Latin America	1,682	1,500	12
Asia	3,077	2,467	25
Africa	175	89	97
Australia, etc.	1,672	1,738	-4
Undisclosed countries	2,326	712	227
Total	35,578	29,355	21

2025: SEK 33.7 billion 2026: SEK 57.1 billion 2027: SEK 55.3 billion 2028: SEK 27.6 billion After 2028: SEK 23.9 billion

Order by market A total of 57% (80) of the order bookings related to markets outside Sweden during Jan-Jun 2025.

Sales by market A total of 57% (58) of the sales related to markets outside Sweden during Jan-Jun 2025.

Orders/sales to international marketsOrders/sales to Sweden

Sales Jan-Jun, MSEK

Income

Second quarter 2025

Gross income increased 26 per cent in the quarter and amounted to SEK 4,256 million (3,380). The gross margin, however, declined in the quarter to 21.5 per cent compared to 22.3 per cent same period last year. This was due to increased corporate costs related to IT security and digitalisation.

EBITDA increased 44 per cent to SEK 2,831 million (1,961) with a margin of 14.3 per cent (12.9). Operating income (EBIT) increased 49 per cent and amounted to SEK 1,977 million (1,331) with an operating margin of 10.0 per cent (8.8). The EBIT improvement was driven by strong performance in Dynamics and Surveillance. In the quarter, a non-recurring contribution of SEK 105 million in the minority portfolio positively impacted the results.

January-June 2025

Gross income increased 23 per cent and amounted to SEK 7,975 million (6,465) following both increased sales volumes and margin improvement. The gross margin increased to 22.4 per cent (22.0) driven by improvements across several business areas.

Total depreciation, amortisation and write-downs amounted to SEK 1,540 million (1,258). Depreciation of tangible fixed assets and right-of-use assets amounted to SEK 982 million (837). Amortisation and write-downs of intangible fixed assets amounted to SEK 558 million (421), of which amortisation of capitalised development expenditures amounted to SEK 359 million (314).

Research and development costs amounted to SEK 1,712 million (1,351) following increases across several business areas.

Share of income in associated companies and joint ventures amounted to SEK 123 million (22). The increase was driven by the non-recurring contribution in the minority portfolio.

EBITDA increased 31 per cent and amounted to SEK 4,971 million (3,780), with an EBITDA margin of 14.0 per cent (12.9). Operating income (EBIT) increased 36 per cent and amounted to SEK 3,431 million (2,522), with a margin of 9.6 per cent (8.6). The EBIT improvement year-over-year was mainly driven by the strong performance in Dynamics and Surveillance. In the period, a non-recurring contribution of SEK 105 million in the minority portfolio had a positive impact on the results.

Financial net

MSEK	Jan-Jun 2025	Jan-Jun 2024
Financial net related to pensions	-19	-23
Net interest items	45	60
Currency gains/losses	226	-164
Lease liability interest	-80	-81
Other financial items	-17	3
Total	155	-205

The financial net amounted to SEK 155 million (-205) in the first half-year 2025. The increase compared to last year was mainly due to SEK appreciation which had a favourable impact on currency hedges in the tender portfolio.

The financial net related to pensions is the financial cost for net pension obligations recognised in the balance sheet. See note 13 for more information regarding defined-benefit pension plans. Net interest items refer to interest on liquid assets, long- and short-term investments and interest expenses on short- and long-term interest-bearing liabilities and interest on interest-rate swaps.

Lease liability interest consists of the interest portion related to lease liabilities recognised in the balance sheet. Other financial items consist of realised and unrealised results from short-term investments and derivatives as well as other currency effects, e.g. changes in exchange rates for liquid assets in currencies other than SEK.

Tax

Current and deferred taxes amounted to SEK -773 million (-521) during the first half-year 2025, corresponding to an effective tax rate of 21.6 (22.5) per cent. The decrease in the effective tax rate was due to lower share of taxable results from foreign operations.

Operating income (MSEK) and margin (%), Jan-Jun

EPS after dilution, SEK 1.45 2.80 3.28 5.17 Jan-Jun 2022 Jan-Jun 2023 Jan-Jun 2024 Jan-Jun 2025

Internally funded R&D expenditures, MSEK

Financial position and liquidity

At the end of June 2025, Saab had a net liquidity of SEK 690 million, a decrease of SEK 1,521 million compared to a net liquidity of SEK 2,211 million at year-end 2024. Net debt/EBITDA was -0.07 (-0.26) at the end of the period.

Cash flow from operating activities amounted to SEK 1,971 million (-2,340).

Contract assets increased by SEK 2,967 million and contract liabilities increased by SEK 2,496 million compared to year-end 2024. Inventories increased by SEK 2,642 million during the first halfyear with increases mainly in Dynamics and Surveillance.

Net provisions for pensions, excluding special employer's contribution, amounted to SEK 447 million as of 30 June 2025, compared to SEK 1,070 million at year-end 2024. The effect on net debt of SEK 623 million was mainly a result of positive return on pension plan assets. For further information on Saab's defined-benefit pension plan, see note 13.

Tangible fixed assets amounted to SEK 14,286 million compared to 12,484 at the end of 2024. Right-of-use assets recognised in the balance sheet amounted to SEK 2,579 million compared to 2,881 million at the end of 2024.

Financial investments decreased with SEK 109 million in the first half-year and amounted to SEK 2,654 million, compared to SEK 2,763 million at year-end 2024. The decrease was mainly related to revaluation of shares in Helsing GmbH. Revaluation of the investment in Helsing GmbH is recognised in other comprehensive income.

Net investments during the period amounted to SEK 3,342 million (2,188). Investments in tangible fixed assets amounted to SEK 2,655 million (1,842).

Investments in intangible fixed assets amounted to SEK 698 million (370), of which SEK 359 million (248) was related to capitalised R&D expenditures. The investments were mainly related to the development of Gripen E/F. Of the total investments in intangible fixed assets, SEK 339 million (122) was related to other intangible fixed assets.

During the period, the first instalment of the dividend, amounting to SEK 537 million, was paid.

As of 30 June 2025, long- and short-term interest-bearing investments and liquid assets amounted to SEK 10,700 million, a decrease of SEK 2,651 million compared to year-end 2024. In addition, the Group had an unutilised revolving credit facility amounting to SEK 6,000 million. During the period, a new SEK 6,000 million revolving credit facility was signed, replacing the SEK 4,000 million and SEK 2,000 million revolving credit facilities signed in 2021.

Capital employed increased by SEK 3,025 million, from December 31, 2024, to SEK 50,370 million at the end of the first half-year. The return on capital employed was 15.3 per cent (12.8) and the return on equity was 14.0 per cent (11.2), both measured over a rolling 12-month period.

Key indicators of financial position and liquidity

Change in net debt Jan-Jun 2025

	MSEK
Net liquidity (+) / net debt (-), 31 Dec 2024 ¹⁾	2,211
Cash flow from operating activities	1,971
Change in net pension obligation	623
Net investments	-3,342
Sale of and investments in financial assets, associates and joint ventures	-6
Write-downs of other long-term interest-bearing receivables	-36
Change through equity swap agreement Repurchase of shares	-1-
Dividend	-537
Dividend to and transactions with non-controlling interest	26
Additional lease liabilites Sales of and investments in Sale of subsidiaries and other	-98- xx
Other items, currency impact and unrealised results from financial
investments	-121
Net liquidity (+) / net debt (-), 30 June 2025 ¹⁾	690
¹⁾ Net liquidity (+) / net debt (-) excluding net provisions for pensions, lease liabilities and interest-bearing receivables, 30 June 2025	3,500

MSEK	30 Jun 2025	31 Dec 2024	Change	30 Jun 2024
Net liquidity / debt ²⁾	690	2,211	-1,521	-2,354
Intangible fixed assets	12,894	12,998	-104	13,015
Goodwill	5,372	5,572	-200	5,516
Capitalised development costs	6,025	6,052	-27	6,083
Other intangible fixed assets	1,497	1,374	123	1,416
Tangible fixed assets, etc ³⁾	14,687	12,898	1,789	11,338
Right of use assets ⁴⁾	2,579	2,881	-302	2,617
Inventories	24,467	21,825	2,642	19,780
Accounts receivable	10,402	11,334	-932	9,218
Contract assets	17,290	14,323	2,967	14,346
Contract liabilities	28,171	25,675	2,496	17,653
Equity/assets ratio, %	37.7	35.9		39.6
Return on equity, %	14.0	12.4		11.2
Return on capital employed, %	15.3	13.6		12.8
Equity per share, SEK ¹⁾	73.84	66.33	7.51	64.39
1) Number of shares excluding treasury shares	536,640,258	535,270,968		533,632,490

2) The Group's net liquidity/debt refers to liquid assets, short-term investments and interest-bearing receivables less interest-bearing liabilities and provisions for pensions excluding provisions for special employers' contribution attributable to pensions. For a detailed break-down of interest-bearing receivables and interest-bearing liabilities, see note 8.

3) Including tangible fixed assets and biological assets.

4) Relate to right-of-use assets for leases.

Cash flow

Second quarter 2025

Operational cash flow in the second quarter amounted to SEK -1,136 million (-2,251). The improvement was primarily driven by increased cash flow from operating activities, offset by higher investments, related to capacity expansion, and working capital from high business growth.

Saab is operating in a business environment with significant needs for increased capabilities and customer demand. As a result, Saab is increasing investments to expand its capacity and boost production volumes, which entails a higher working capital. Saab is proactively engaging with its supply chain to manage capacity increases and inventory levels. Whilst this is currently putting some pressure on operational cash flow, it enables Saab to address future opportunities and grow long-term.

January-June 2025

Operational cash flow for the first half-year amounted to SEK -1,150 million (-4,249). The improvement compared to last year was mainly a result of large customer payments, partly offset by increased investments.

Due to the nature of Saab's customer contracts, deliveries and timing of customer milestone payments in large projects can result in large fluctuations in cash flow between reporting periods.

Free cash flow during the period amounted to SEK -1,769 million (-4,896) as a result of the increased operational cash flow. For more detailed information on cash flow, see note 11.

MSEK	Jan-Jun 2025	Jan-Jun 2024
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	5,114	3,561
Change in working capital	-2,922	-5,622
Cash flow from operating activities excluding taxes and other financial items	2,192	-2,061
Cash flow from investing activities ²⁾	-3,342	-2,188
Operational cash flow	-1,150	-4,249
Taxes and other financial items	-613	-619
Investments in and sale of financial assets and operations	-6	-28
Free cash flow	-1,769	-4,896

1) Including amortisation of lease liabilities

2) Cash flow from investing activities excluding change in short-term investments and other interest-bearing financial assets and excluding sale of and investment in financial assets, operations and subsidiaries. If investments in and sale of financial fixed assets are considered to be of operating nature, the item is included in investing activities.

Cash flow from operating activities excluding taxes and other financial items, MSEK

Free cash flow, MSEK

Business Area

Aeronautics

Business Units

Advanced Programs, Aerospace Systems, Aviation Services, Gripen.

Market highlights

Order bookings in the quarter increased and included several large and medium-sized orders, including additional equipment for Gripen E from Sweden of SEK 2.9 billion. Market interest for the Gripen E/F continued in the quarter, with several ongoing campaigns and negotiations with Thailand and Colombia.

Sales and operating income

Sales increased 19% in the quarter, driven by high project activity across several business units. The EBIT and the EBIT margin decreased year-over-year due to increased start-up costs in the T-7A program, higher marketing expenses to address the market interest for Gripen as well as increased R&D cost.

Cash flow

Cash flow was negative in the quarter due to capital build-up related to Gripen programmes and investments.

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024		Change, % Full Year 2024
Order bookings	9,206	7,296	26	6,401	2,154	197	11,176
Order backlog	41,718	46,525	-10				41,501
Sales	8,949	7,773	15	4,424	3,726	19	16,689
EBITDA	812	649	25	374	317	18	1,230
EBITDA margin, %	9.1	8.3		8.5	8.5		7.4
Operating income (EBIT)	616	533	16	249	257	-3	977
Operating margin, %	6.9	6.9		5.6	6.9		5.9
Operational cash flow	-3,489	-1,184		-1,219	-360		-712

Market Sales in markets outside Sweden amounted to 34% (39) during Jan-Jun 2025.

Business Area Dynamics

Business Units

Barracuda, Ground Combat, Missile Systems, Tactical Support Solutions, Training and Simulation.

Market

Market highlights

Continued strong demand for the Dynamics portfolio in the quarter, where key orders included a RBS 70 NG contract to Sweden, Ground Combat orders from Netherlands and France, as well as a contract for Combat Training Centre to Denmark.

Order intake in the period decreased compared to the same quarter last year, which included a large Carl-Gustaf system order of SEK 12.9 billion to Poland and a large defence equipment contract of SEK 7.7 billion.

Sales and operating income

Strong sales growth of 73%, following an unusually high activity level and large number of deliveries made in the quarter. The EBIT margin improved to 21%, from 18% in the same period last year, driven by scale effects on higher volumes.

Cash flow

Cash flow was positive in the quarter, but was partly offset by higher level of investments.

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024		Change, % Full Year 2024
Order bookings	15,111	32,555	-54	7,003	26,964	-74	50,293
Order backlog	84,764	69,790	21				78,886
Sales	8,857	5,934	49	5,714	3,312	73	14,605
EBITDA	1,731	1,019	70	1,232	624	97	2,693
EBITDA margin, %	19.5	17.2		21.6	18.8		18.4
Operating income (EBIT)	1,655	961	72	1,194	594	101	2,565
Operating margin, %	18.7	16.2		20.9	17.9		17.6
Operational cash flow	5,590	-1,883		262	-887		2,798

Business Area

Surveillance

Business Units

Airborne Early Warning, Digital Battlespace Solutions, Fighter Core Capabilities, Naval Combat Systems, Safety and Security Solutions, Surface Sensor Solutions.

Market highlights

Order bookings in the quarter increased compared to the same period last year driven by several small and medium-size orders and the G4A radar system to Sweden.

High market interest for the GlobalEye continues and in the quarter, France announced its intention to procure Saab's GlobalEye AEW&C solution including ground equipment, training and support. Saab has not yet received an order.

Sales and operating income

Surveillance reported strong sales growth in the quarter, driven by high project execution across the business. EBIT and the EBIT margin improved as a result of higher sales volumes.

Cash flow

Cash flow was negative in the quarter, mainly due to the timing of customer payments, as well as increased inventory and investments for planned future deliveries.

Market Sales in markets outside Sweden amounted to 70% (74) during Jan-Jun 2025.

Market Sales in markets outside Sweden amounted to 32%

*Operating margin and Operating margin R12, % are adjusted for items affecting comparability and excludes a capital gain of SEK 270 million from the divestment of MTM operations in Q1 2023. For Q4 2024, adjustments comprise a gain from remeasurement of a contingent consideration payable of SEK 112 million and write-down of intangible asset related to aquired customer relations of SEK 72 million.

Business Area Kockums

Business Units

Docksta, Submarines, Surface Ships, Underwater Systems.

Market highlights

Customer activity remained high in the quarter and resulted in strong order intake. Key orders received were 22 combat boat CB90 and a lightweight torpedoes system contract to Sweden as well as a modification order for Swedish navy's five Visby corvettes.

Sales and operating income

Sales increased in the quarter, year-over-year, mainly driven by the export business and aftermarket projects in the Surface Ship unit.

EBIT and the EBIT margin was lower compared to the same quarter last year, due to continued negative contribution from the Underwater Systems business unit.

Cash flow

Cash flow was positive in the quarter and was driven by large customer payments.

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024		Change, % Full Year 2024
Order bookings	5,957	3,901	53	4,997	2,549	96	5,706
Order backlog	15,664	16,798	-7				14,360
Sales	4,641	4,163	11	2,388	2,197	9	8,364
EBITDA	403	331	22	184	188	-2	690
EBITDA margin, %	8.7	8.0		7.7	8.6		8.2
Operating income (EBIT)	370	307	21	168	175	-4	639
Operating margin, %	8.0	7.4		7.0	8.0		7.6
Operational cash flow	459	-152		1,106	-1,072		289

Other operating segment Combitech

Market highlights

Demand for Combitech's solutions continued in the quarter, with new orders in critical infrastructure and the defence sector. With growing demand in areas such as software and mechanical design, cybersecurity and digitalisation, Combitech is well-positioned to meet customers' increasing need for advanced solutions.

Sales and operating income

Sales increased in the quarter, driven by a higher number of consultants in projects and increased product sales. The EBIT margin was slightly lower year-over-year due to calendar effects and project mix.

Cash flow

Cash flow was positive but lower compared to the same period last year due to timing of customer payments.

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024		Change, % Full Year 2024
Order bookings	2,660	2,480	7	1,315	1,397	-6	4,637
Order backlog	2,066	1,945	6				1,927
Sales	2,522	2,131	18	1,340	1,082	24	4,306
EBITDA	238	221	8	118	96	23	458
EBITDA margin, %	9.4	10.4		8.8	8.9		10.6
Operating income (EBIT)	231	215	7	113	93	22	442
Operating margin, %	9.2	10.1		8.4	8.6		10.3
Operational cash flow	142	247		37	112		532

*Operating margin and Operating margin R12, % adjusted for items affecting comparability and excludes the capital gain of SEK 18 million from the divestment of Combitech Norway in Q3 2024.

Corporate and other items

Corporate

Corporate comprise group staff, group departments and other operations including Saab's minority portfolio. The minority portfolio contains Saab's Venture portfolio.

In the first half-year 2025, Corporate reported order bookings amounting to SEK 2,029 million (20), of which SEK 1,811 million was booked in the second quarter. The increase was largely attributable to the UMS Skeldar operations. In the period, Corporate reported sales of SEK 473 million (281) driven by growth in Skeldar. The operating loss amounted to SEK -467 million (-315) in the first half-year 2025, following increased costs related to IT security, digitalisation and Saab's long-term incentive programmes, partly offset by a non-recurring contribution of SEK 105 million in the minority portfolio. Operational cash flow attributable to Corporate during the first half-year 2025 was somewhat lower than last year and amounted to SEK -1,401 million (- 1,352). The decrease was due to higher investments while cash flow from operations improved.

Acquisitions and divestments 2025

No acquisitions or divestments took place in the first half-year 2025.

Share repurchase

Saab held 5,553,765 treasury shares as of 30 June 2025, compared to 6,915,618 at year-end 2024. The Annual General Meeting in 2025 decided that Saab may enter into an equity swap agreement with a third party on terms and conditions in accordance with market practice, in order to hedge the expected financial exposure of LTI 2026, whereby the third party in its own name may acquire and transfer shares of series B in Saab to employees who participate in LTI 2026. The Annual General Meeting decided not to approve the Board's proposal on authorisation for the Board of Directors to resolve on acquisitions of shares and resolution on transfers of own shares to the participants in LTI 2026. The Annual General Meeting also decided to authorise the Board, before the next Annual General Meeting, to decide on the acquisition of shares of series B up to a maximum of 10 percent of the total number of shares in the company. The purpose of the authorisation is to be able to adjust the company's capital structure and thereby contribute to an increased shareholder value as well as to enable a continued use of repurchased shares in connection with potential acquisitions of companies and, where applicable, for the company's share-related incentive programmes.

Risks and uncertainties

Saab's operations primarily involve the development, production and supply of technologically advanced hardware and software to military and civilian customers around the world. Operations largely consist of major projects carried out over long periods of time, usually several years, in close cooperation with customers, suppliers, partners and research institutions. Projects generally entail significant investments, long periods of time and large share of technological development or refinement of products. In addition to customer and supplier relations, international operations involve joint ventures and collaborations with other industries as well as the establishment of operations abroad. Operations entail risk in various respects. The key risk areas are strategic, market and political, operating, financial and compliance. Various policies and instructions govern the management of material risks. Saab is today growing rapidly both in Sweden and in other countries including investments in capacity scaling such as production ramp-ups and new factories as well as with a high rate of recruitment, which entails a higher level of business risk. This also implies a greater uncertainty in sales growth, income and cash flow. Furthermore, the market is characterised by conditions where orders can be deferred to the future partly for financial and political reasons.

The uncertainty in the global supply chain, including trade barriers and tariffs, entails a risk for Saab and its operations. The challenges primarily relate to the availability of certain raw materials and defence-specific supply, ramping up production capacity at some suppliers, as well as suppliers' ability to handle the flowdown of increasing regulatory requirements. For certain sub-systems, Saab is also dependent on deliveries from one or a few suppliers. Saab works actively to ensure a robust supply chain by supplier commitments to Saab's growth plan and to manage the supply chain risks through mitigating actions such as contract management, second sourcing, in- and outsourcing, re-planning and intensified forecasting dialogue and negotiations with suppliers.

In October 2024, Saab North America, Inc. received a subpoena from the U.S. Department of Justice (DoJ) requesting information about the Brazilian Government's acquisition of 36 Gripen E/F fighter aircraft in 2014. Saab is complying with the request to supply information and cooperating with the DoJ in this matter. Both Brazilian and Swedish authorities have previously investigated parts of the Brazilian fighter procurement process. These investigations were closed without indicating any wrongdoings by Saab.

For a general description of the risk areas, see the Annual Report 2024, pages 45-50.

Owners

Largest owners, 30 June 2025:

	% of capital	% of votes
Investor AB	30.2	40.0
Wallenberg
Investments	8.7	7.6
BlackRock	2.6	2.3
Vanguard	2.5	2.1
Swedbank Robur
Fonder	2.1	1.8
Norges Bank
Investment
Management	1.8	1.6
VanEck	1.3	1.2
Avanza Fonder	1.0	0.9
WisdomTree Asset
Management	0.9	0.8
Avanza Pension	0.8	0.7

Source: Modular Finance The percentage of votes is calculated on the number of shares excluding treasury shares.

Personnel

	30 Jun 2025	31 Dec 2024
Number of
permanent
employees	26,134	24,481
FTEs	26,122	24,523

Risks related to armed conflicts

The geopolitical tensions in the world, including the armed conflicts in Ukraine and the Middle East as well as disinformation, have resulted in a more complex and diverse security environment for Saab. Therefore, Saab has increased security measures to protect its sites, personnel and IT, as well as measures against cyber risks, which may lead to increased costs for security.

Saab has no defence-related sales exposure to Belarus and Russia, but is closely monitoring the impact on the business from the war in Ukraine. Saab is operating in a highly regulated market and it is essential for Saab as a responsible defence company to comply with all applicable regulations and commitments regarding export control and sanctions, i.e. sanctions from EU, UN, OSCE or other applicable countryspecific sanctions. Saab's crisis management organisation has an ongoing focus on security, embargo and sanction practices.

Furthermore, Saab currently has no direct defence-related sales exposure to Israel. However, the company could be affected by supply chain risks related to the conflict in the Middle East, as it has a limited number of suppliers in Israel. Saab is continuously monitoring the risk situation, has mitigating actions in place and is in close dialogue with its suppliers.

Sustainability

Occupational Health and Safety Injury frequency rate 2025 Target: Reduce work-related accidents by decreased TRIFR¹ compared to base year 2024 3.57 4.38 3.39 2022 2023 2024 January-June TRIFR 2025

2022 2023 2024 Jun 2025 Share of Women Managers Share of Women Employees

Green and Social Transition GHG emissions² 2030 Goal: 42% reduction of Scope 1 & 2 CO2-eq³ from base year 2020 Diversity and Inclusion Share of women employees 0% -18% -24% -26% -31% -34% 0% -4% -8% -13% -17% -21% Base ye ar 2020 2021 2022 2023 2024 Rolling 1 2 Months Scope 1 & 2 (tCO₂-eq) Change from base year Near Term Target SBTI 27% 27% 28% 28% 24% 25% 26% 27%

Resilient and safe societies

Anti-corruption

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

During the quarter, Saab launched a new global anti-bribery and anti-corruption training, mandatory for all employees. The purpose of the e-learning is to ensure that Saab remains compliant with its zero tolerance for corruption and bribery.

Green and social transition

Climate

During the first half of 2025, Saab reduced its Scope 1 & 2 CO2-eq emissions by eight per cent compared with the same period in 2024. The result was mainly driven by reduced emissions from test flights (scope 1). The overall reduction progress since 2020 amounts to approximately 34 per cent.

In the quarter, Special Flight Operations in Nyköping conducted the first refuelling of a Special Operations aircraft with Sustainable Aviation Fuel (SAF). The fuel can now be used for all types of aircraft that Saab flies from Nyköping, including aircraft used for services such as aerial targeting, aerial firefighting, and training. The procurement of SAF is estimated to reduce 150 tonnes of Scope 1 CO2-eq in 2025.

In the quarter, Saab received the score of "A" for the submitted 2024 Climate Disclosure Project (CDP) Supplier Engagement Assessment, placing Saab on A-list for the first time. The score reflects efforts within the assessed criteria: climate governance, engagement, targets and scope 3 emissions.

Occupational health and safety

Total Recordable Injury Frequency Rate (TRIFR) decreased by 23 per cent in the first half of 2025, compared to the base year 2024. The decrease is due to continuous efforts in improving workplace safety, focusing on incident prevention and strengthening the reporting culture, including further development of the reporting and case management process.

Innovation and partnerships

Diversity and inclusion

In the quarter, the share of women employees increased to 27 per cent, driven in part by a higher percentage of women among new hires. The share of women managers remained at 28 per cent.

In the quarter, Saab was ranked as the most attractive employer in Universum's 2025 career survey by Engineering graduates from 34 Swedish universities. Additionally, Saab achieved top rankings in IT and natural science disciplines, demonstrating Saab's appeal to students from diverse academic backgrounds.

2025 Target: 25% women employees & 30% women managers

Industrial cooperation and partnerships During the quarter, Saab submitted its communication on progress to the United Nations Global Compact (UNGC), of which it has been a signatory since 2012, solidifying its continued commitment to the UN guiding principles for responsible business.

² SBTi Near Term Target relates to the planned reduction trajectory to meet the 2030 goal

¹ Number of recordable injuries / total hours worked x 1,000,000

³ Carbon dioxide equivalent

Significant events

January-June 2025

On 17 January, Saab provided a Q4 update and comments on higher organic sales growth for full year 2024. Sales for full year 2024 was expected to be approximately SEK 63.8 billion (51.6), corresponding to an organic sales growth of 23.4%.

On 29 January, Saab announced that Jonas Hjelm, Senior Vice President and Head of Government Affairs, left his position and the Group Management team to become Senior Advisor at Saab.

On 31 January, Saab announced a number of changes affecting the Group Management team. Eva Karlsson was appointed Senior Vice President, Chief Operating Officer (COO) and became a member of Saab's Group Management team. As a consequence, Saab's Charlotta Björklund, then Senior Vice President, Operational Excellence, left the Group Management team as of 1 March 2025 and subsequently reported to the COO. Moreover, the scope of the Group Strategy function was reduced and became more focused on the common strategic areas of Saab. Therefore, Saab's Christian Hedelin, Senior Vice President and Chief Strategy Officer, is no longer a member of the Group Management team and directly reports to Anders Carp, Deputy CEO.

On 3 March, Saab received an order for maintenance and modernisation of the cruise missile TAURUS KEPD 350. The order value is SEK 1.7 billion and the contract period is 2025-2035.

On 12 March, Saab announced that it had signed a Memorandum of Understanding (MoU) with the Ukrainian defence company Radionix regarding the intention to form a strategic collaboration relating to sensors and defence electronics.

On 31 March, Saab signed a framework agreement with the Latvian Ministry of Defence for the short-range ground-based air defence system RBS 70 NG and received an order within the agreement. The order value is SEK 2.1 billion and deliveries will take place 2026-2030.

On 10 April, Saab held its Annual General Meeting in Linköping, Sweden and the AGM decided on a dividend of SEK 2.00 per share to be paid out in two equal instalments. The first instalment of the dividend (SEK 1.00 per share) was paid out on 17 April 2025. The second instalment (SEK 1.00 per share) will be paid out on 10 October 2025. Read more on www.saab.com/agm.

On 28 May, Saab has been awarded a contract by the Swedish Defence Materiel Administration (FMV) to equip the Swedish Navy's five Visby-class corvettes with the Sea Ceptor air defence system from MBDA. The order value is SEK 1.6 billion and installing the system will begin in early 2026.

On 4 June, The Royal Thai Air Force confirmed its selection of the Saab Gripen E/F as its new future multi-role fighter. Saab and the Swedish Defence Materiel Administration (FMV) will now follow the next steps in the procurement process with the Kingdom of Thailand.

On 16 June, Saab announced a strategic cooperation with General Atomics Aeronautical Systems relating to the development of an Unmanned Airborne Early Warning (UAEW) solution. The solution will be based on General Atomics Aeronautical Systems' unmanned aerial system MQ-9B.

On 17 June, Saab announced that it has signed a new SEK 6 billion revolving credit facility agreement with a group of 11 relationship banks. The facility has a tenor of five years with two one-year extension options.

On 18 June, Saab and the French defence procurement agency (DGA) signed a joint declaration of intent for the sale of two GlobalEye AEW&C aircraft, with an option for two more, including ground equipment, training and support.

On 25 June, Saab and the Swedish Defence Material Administration (FMV) signed a contract regarding additional equipment for manufacturing of Gripen E. The order value amounts to approximately SEK 2.9 billion.

For more information on significant orders received during the period, see page 4 and the comments on the business areas on page 8-10. All press releases can be found on www.saab.com/newsroom.

Events after the conclusion of the period

Consolidated income statement

MSEK	Note	Jan-Jun 2025	Jan-Jun 2024	Rolling 12 Months	Full Year 2024
Sales	4	35,578	29,355	69,974	63,751
Cost of goods sold		-27,603	-22,890	-54,801	-50,088
Gross income		7,975	6,465	15,173	13,663
Gross margin, %		22.4	22.0	21.7	21.4
Other operating income	5	99	40	360	301
Marketing expenses	5	-1,582	-1,449	-3,232	-3,099
Administrative expenses		-1,389	-1,180	-2,625	-2,416
Research and development costs		-1,712	-1,351	-3,170	-2,809
Other operating expenses		-83	-25	-108	-50
Share of income in associated companies and joint ventures	5	123	22	173	72
Operating income (EBIT) ¹⁾	3	3,431	2,522	6,571	5,662
Operating margin, %		9.6	8.6	9.4	8.9
Financial income		478	292	749	563
Financial expenses		-323	-497	-762	-936
Net financial items		155	-205	-13	-373
Income before taxes		3,586	2,317	6,558	5,289
Taxes		-773	-521	-1,331	-1,079
Net income for the period		2,813	1,796	5,227	4,210
of which Parent Company's shareholders' interest		2,797	1,770	5,198	4,171
of which non-controlling interest		16	26	29	39
Earnings per share before dilution, SEK ²⁾		5.22	3.32	9.71	7.81
Earnings per share after dilution, SEK ³⁾		5.17	3.28	9.63	7.74
1) Of which depreciation/amortisation and write-downs		-1,540	-1,258	-3,022	-2,740
2) Average number of shares before dilution		536,003,433	533,576,038	535,221,394	534,007,696
3) Average number of shares after dilution		540,641,009	539,012,716	540,034,933	539,218,308

Consolidated statement of comprehensive income

MSEK	Jan-Jun 2025	Jan-Jun 2024	Rolling 12 Months	Full Year 2024
Net income for the period	2,813	1,796	5,227	4,210
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	702	1,203	-153	348
Tax attributable to revaluation of net pension obligations	-145	-248	31	-72
Equity instruments classified as measured at fair value through other comprehensive income	-86	1,339	-54	1,371
Tax attributable to equity instruments classified as measured at fair value through other
comprehensive income	-	-8	-	-8
Total	471	2,286	-176	1,639
Items that may be reversed in the income statement:
Translation differences	-858	341	-713	486
Cash flow hedges	3,280	-1,247	2,167	-2,360
Tax attributable to cash flow hedges	-674	248	-430	492
Interest-bearing investments classified as measured at fair value through other
comprehensive income	21	-	23	2
Tax attributable to interest-bearing investments classified as measured at fair value
through other comprehensive income	-4	-	-5	-1
Total	1,765	-658	1,042	-1,381
Other comprehensive income/loss for the period	2,236	1,628	866	258
Net comprehensive income/loss for the period	5,049	3,424	6,093	4,468
of which Parent Company's shareholders' interest	5,059	3,386	6,081	4,408
of which non-controlling interest	-10	38	12	60

Consolidated statement of financial position

MSEK Note	30 Jun 2025	31 Dec 2024	30 Jun 2024
ASSETS
Fixed assets:
Intangible fixed assets 7	12,894	12,998	13,015
Tangible fixed assets	14,286	12,484	10,930
Biological assets	401	414	408
Right of use assets	2,579	2,881	2,617
Shares in associated companies and joint ventures	370	315	262
Financial investments	2,654	2,763	2,444
Long-term interest-bearing investments	2,887	1,610	590
Long-term receivables	458	435	467
Deferred tax assets	473	521	505
Total fixed assets	37,002	34,421	31,238
Current assets:
Inventories	24,467	21,825	19,780
Derivatives	2,489	930	966
Tax receivables	256	250	302
Accounts receivable	10,402	11,334	9,218
Contract assets	17,290	14,323	14,346
Other receivables	3,808	3,259	2,568
Prepaid expenses and accrued income	2,364	1,740	1,781
Short-term interest-bearing investments	5,659	8,898	5,686
Liquid assets 11	2,154	2,843	1,810
Total current assets	68,889	65,402	56,457
TOTAL ASSETS	105,891	99,823	87,695
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity:
Parent Company's shareholders' interest	39,624	35,503	34,361
Non-controlling interest	326	309	334
Total shareholders' equity	39,950	35,812	34,695
Long-term liabilities:
Long-term lease liabilities	1,983	2,337	2,120
Other long-term interest-bearing liabilities 8	5,873	7,128	7,127
Other liabilities	162	136	255
Provisions for pensions 13	609	1,387	584
Other provisions	2,267	2,238	2,453
Deferred tax liabilities	1,889	1,070	1,419
Total long-term liabilities	12,783	14,296	13,958
Current liabilities:
Short-term lease liabilities	710	695	641
8		224	457
Other short-term interest-bearing liabilities Contract liabilities	1,327
	28,171	25,675	17,653
Accounts payable Derivatives	6,818	8,215	5,980
Tax liabilities	640	2,444	1,474
	579	536	501
Other liabilities	1,900	1,190	1,755
Accrued expenses and deferred income Provisions	11,917 1,096	9,700 1,036	9,590 991
Total current liabilities	53,158	49,715	39,042
Total liabilities TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	65,941	64,011	53,000
	105,891	99,823	87,695

Consolidated statement of changes in equity

MSEK	Capital stock	Other capital contri butions	Net result of cash flow hedges	Translation reserve	Retained earnings	Total parent company's shareholders' interest	Non controlling interest	Total shareholders' equity
Opening balance, 1 January 2024	2,174	6,099	813	785	22,164	32,035	327	32,362
Net comprehensive income/loss for the period January-June 2024			-999	329	4,056	3,386	38	3,424
Transactions with shareholders:
Repurchase of shares through equity swap					-319	-319		-319
Share matching plan					112	112		112
Dividend					-853	-853	-31	-884
Closing balance, 30 June 2024	2,174	6,099	-186	1,114	25,160	34,361	334	34,695
Net comprehensive income/loss for the period July-December 2024			-869	136	1,755	1,022	22	1,044
Transactions with shareholders:
Early redemption of shares through equity swap					1	1		1
Share matching plan					123	123		123
Dividend					-3	-3	-48	-51
Acquisition and sale of non-controlling interest					-1	-1	1	0
Closing balance, 31 December 2024	2,174	6,099	-1,055	1,250	27,035	35,503	309	35,812
Opening balance, 1 January 2025	2,174	6,099	-1,055	1,250	27,035	35,503	309	35,812
Net comprehensive income/loss for the period January-June 2025			2,606	-832	3,285	5,059	-10	5,049
Transactions with shareholders:
Early redemption of shares through equity swap					1	1		1
Share matching plan					135	135		135
Dividend					-1,074	-1,074	-23	-1,097
Acquisition and sale of non-controlling interest							50	50
Closing balance, 30 June 2025	2,174	6,099	1,551	418	29,382	39,624	326	39,950

Consolidated statement of cash flows

MSEK Note	Jan-Jun 2025	Jan-Jun 2024	Full Year 2024
Operating activities:
Income after financial items	3,586	2,317	5,289
Adjustments for items not affecting cash flows	1,990	1,479	3,369
Dividend from associated companies and joint ventures	55	16	22
Income tax paid	-739	-530	-945
Cash flow from operating activities before changes in working capital	4,892	3,282	7,735
Cash flow from changes in working capital:
Contract assets and liabilities	-634	-857	7,218
Inventories	-2,771	-2,887	-4,890
Other current receivables	-51	-2,596	-5,464
Other current liabilities	817	1,323	3,589
Provisions	-282	-605	-1,456
Cash flow from operating activities	1,971	-2,340	6,732
Investing activities:
Capitalised development costs	-359	-248	-530
Investments in other intangible fixed assets	-339	-122	-297
Investments in tangible fixed assets	-2,655	-1,842	-4,012
Sales and disposals of tangible fixed assets including biological assets	11	24	70
Investments in and sale of short-term investments	3,266	5,677	2,471
Investments in financial assets, associated companies and joint ventures	-1,349	-604	-1,894
Investments in operations	-	-15	-15
Sale of subsidiaries and other operations	-	-	25
Cash flow from investing activities	-1,425	2,870	-4,182
Financing activities:
Repayments of loans	-151	-341	-678
Amortisation of lease liabilities	-391	-339	-690
Raising of loans and increase in other interest-bearing liabilities	0	230	331
Dividend paid to Parent Company's shareholders	-537	-427	-856
Dividend paid to non-controlling interest	-23	-28	-41
Transactions with non-controlling interest	50	0	-
Cash flow from financing activities	-1,052	-905	-1,934
Cash flow for the period	-506	-375	616
Liquid assets at the beginning of the period	2,843	2,129	2,129
Exchange rate difference in liquid assets	-183	56	98
Liquid assets at end of period 11	2,154	1,810	2,843

Quarterly consolidated income statement

MSEK	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023
Sales	19,786	15,792	20,850	13,546	15,170	14,185	16,122	11,527
Cost of goods sold	-15,530	-12,073	-16,564	-10,634	-11,790	-11,100	-12,605	-9,046
Gross income	4,256	3,719	4,286	2,912	3,380	3,085	3,517	2,481
Gross margin, %	21.5	23.5	20.6	21.5	22.3	21.7	21.8	21.5
Other operating income	58	41	150	111	20	20	179	15
Marketing expenses	-828	-754	-1,000	-650	-755	-694	-777	-633
Administrative expenses	-684	-705	-668	-568	-595	-585	-596	-443
Research and development costs	-911	-801	-818	-640	-723	-628	-624	-506
Other operating expenses	-24	-59	-41	16	-2	-23	22	-26
Share of income in associated companies and joint ventures	110	13	44	6	6	16	-301	-29
Operating income (EBIT) ¹⁾	1,977	1,454	1,953	1,187	1,331	1,191	1,420	859
Operating margin, %	10.0	9.2	9.4	8.8	8.8	8.4	8.8	7.5
Financial income	153	325	126	145	135	157	334	148
Financial expenses	-165	-158	-354	-85	-158	-339	-131	-154
Net financial items	-12	167	-228	60	-23	-182	203	-6
Income before taxes	1,965	1,621	1,724	1,247	1,308	1,009	1,623	853
Taxes	-429	-344	-283	-275	-296	-225	-369	-197
Net income for the period	1,536	1,277	1,442	972	1,012	784	1,254	656
of which Parent Company's shareholders' interest	1,529	1,268	1,435	966	1,000	770	1,223	652
of which non-controlling interest	7	9	7	6	12	14	31	4
Earnings per share before dilution, SEK ²⁾⁴⁾	2.85	2.37	2.68	1.81	1.87	1.44	2.30	1.23
Earnings per share after dilution, SEK ³⁾⁴⁾	2.83	2.35	2.66	1.79	1.85	1.43	2.27	1.21
	-854	-686	-781	-701	-630	-628	-612	-565
1) Of which depreciation/amortisation and write-downs 2) Average number of shares before dilution ⁴⁾
3) Average number of shares after dilution ⁴⁾	536,345,756	535,661,111	534,848,975	534,029,736	533,736,845	533,415,230	532,640,956	531,993,110
4) Comparison periods adjusted for share split 4:1	541,201,620	539,768,124	540,113,152	539,056,834	539,334,622	539,532,640	538,631,236	538,346,168

Quarterly consolidated statement of comprehensive income

MSEK	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023
Net income for the period	1,536	1,277	1,442	972	1,012	784	1,254	656
Other comprehensive income/loss:
Items that will not be reversed in the income statement:
Revaluation of net pension obligations	276	426	-31	-824	42	1,161	-1,377	161
Tax attributable to revaluation of net pension obligations	-57	-88	6	170	-9	-239	283	-33
Equity instruments classified as measured at fair value through other
comprehensive income	61	-147	49	-17	1,303	36	-41	-
Tax attributable to equity instruments classified as measured at fair
value through other comprehensive income	-	-	-	-	-1	-7	8	-
Total	280	191	24	-671	1,335	951	-1,127	128
Items that may be reversed in the income statement:
Translation differences	-224	-634	373	-228	-12	353	-515	-47
Net gain/loss on cash flow hedges	1,049	2,231	-2,514	1,401	-212	-1,035	982	23
Tax attributable to net gain/loss on cash flow hedges	-216	-458	530	-286	41	207	-206	-5
Interest-bearing investments classified as measured at fair value
through other comprehensive income	14	7	-3	5	-	-	-	-
Tax attributable to interest-bearing investmentss classified as
measured at fair value through other comprehensive income	-3	-1	-	-1	-	-	-	-
Total	620	1,145	-1,614	891	-183	-475	261	-29
Other comprehensive income/loss for the period	900	1,336	-1,590	220	1,152	476	-866	99
Net comprehensive income/loss for the period	2,436	2,613	-148	1,192	2,164	1,260	388	755
of which Parent Company's shareholders' interest	2,440	2,619	-174	1,196	2,152	1,234	386	749
of which non-controlling interest	-4	-6	26	-4	12	26	2	6

Key ratios by quarter

MSEK	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023
Equity/assets ratio, (%)	37.7	37.8	35.9	38.9	39.6	39.7	39.1	40.3
Return on capital employed, % ³⁾	15.3	14.2	13.6	13.2	12.8	12.6	11.9	11.4
Return on equity, % ³⁾	14.0	13.0	12.4	11.8	11.2	10.9	11.1	11.2
Equity per share, SEK ¹⁾³⁾⁴⁾	73.84	71.23	66.33	66.64	64.39	62.42	60.11	59.35
Free cash flow, MSEK ³⁾	-1,322	-447	3,267	2,622	-2,507	-2,389	2,559	-2,554
Free cash flow per share after dilution, SEK ²⁾³⁾⁴⁾	-2.44	-0.83	6.05	4.86	-4.65	-4.43	4.75	-4.75
1) Number of shares excluding treasury shares and repurchased through equity swap ⁴⁾	536,640,258	536,051,253	535,270,968	534,426,981	533,632,490	533,841,200	532,989,260	532,292,652
2) Average number of shares after dilution ⁴⁾	541,201,620	539,768,124	540,113,152	539,056,834	539,334,622	539,532,640	538,631,236	538,346,168

3) For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data

4) Comparison periods adjusted for share split 4:1

Quarterly information per operating segment

MSEK	Q2 2025	Operating margin	Q1 2025	Operating margin	Q4 2024	Operating margin	Q3 2024	Operating margin
Sales
Aeronautics	4,424		4,525		5,594		3,322
Dynamics	5,714		3,143		5,615		3,056
Surveillance	6,544		5,274		6,504		5,115
Kockums	2,388		2,253		2,617		1,584
Combitech	1,340		1,182		1,298		877
Corporate/elimination	-624		-585		-778		-408
Total	19,786		15,792		20,850		13,546
Operating income/loss
Aeronautics	249	5.6%	367	8.1%	252	4.5%	192	5.8%
Dynamics	1,194	20.9%	461	14.7%	1,192	21.2%	412	13.5%
Surveillance	588	9.0%	438	8.3%	668	10.3%	502	9.8%
Kockums	168	7.0%	202	9.0%	275	10.5%	57	3.6%
Combitech	113	8.4%	118	10.0%	136	10.5%	91	10.4%
Corporate	-335		-132		-570		-67
Total	1,977	10.0%	1,454	9.2%	1,953	9.4%	1,187	8.8%
MSEK	Q2 2024	Operating margin	Q1 2024	Operating margin	Q4 2023	Operating margin	Q3 2023	Operating margin
Sales
Aeronautics	3,726		4,047		4,152		3,135
Dynamics	3,312		2,622		3,800		2,453
Surveillance	5,406		4,989		5,777		4,149
Kockums	2,197		1,966		2,027		1,386
Combitech	1,082		1,049		1,117		816
Corporate/elimination	-553		-488		-751		-412
Total	15,170		14,185		16,122		11,527
Operating income/loss
Aeronautics	257	6.9%	276	6.8%	212	5.1%	148	4.7%
Dynamics	594	17.9%	367	14.0%	596	15.7%	382	15.6%
Surveillance	416	7.7%	405	8.1%	705	12.2%	324	7.8%
Kockums	175	8.0%	132	6.7%	192	9.5%	73	5.3%
Combitech	93	8.6%	122	11.6%	111	9.9%	43	5.3%
Corporate	-204		-111		-396		-111
Total	1,331	8.8%	1,191	8.4%	1,420	8.8%	859	7.5%

Multi-year overview

MSEK	2024	2023	2022	2021	2020
Order bookings	96,798	77,811	63,116	43,569	42,328
Order backlog at 31 December	187,223	153,409	127,676	105,177	99,816
Sales	63,751	51,609	42,006	39,154	35,431
Sales in Sweden, %	41	42	42	38	36
Sales in Europe excluding Sweden, %	25	23	19	17	18
Sales in North America, %	10	11	11	11	11
Sales in Latin America, %	7	7	9	15	13
Sales in Rest of the World, %	13	16	19	19	22
Sales in Undisclosed countries, %	4	1	-	-	-
Organic sales growth, %	24	23	5	11	1
Operating income (EBIT)	5,662	4,272	3,274	2,888	1,315
Operating margin, %	8.9	8.3	7.8	7.4	3.7
Adjusted operating income	5,662	4,272	3,274	2,888	2,738
Adjusted operating margin, %	8.9	8.3	7.8	7.4	7.4
Depreciation/amortisation and write-downs	2,740	2,286	2,127	1,938	1,518
EBITDA	8,402	6,558	5,401	4,826	2,833
EBITDA margin, %	13.2	12.7	12.9	12.3	8.0
Income after financial items	5,289	4,418	2,819	2,577	1,112
Net income for the year	4,210	3,443	2,283	2,025	1,092
Total assets	99,823	82,759	72,365	65,039	60,568
Equity	35,812	32,362	29,876	23,249	21,644
Free cash flow ¹⁾	993	1,566	1,871	2,737	3,753
⁾ Cash conversion, % ³	44	74	79	113	⁾ 101 ²
⁾ Return on capital employed, % ¹	13.6	11.9	8.8	8.1	4.3
⁾ Return on equity, % ¹	12.4	11.1	8.6	9.0	5.1
Equity/assets ratio, %	35.9	39.1	41.3	35.7	35.7
Earnings per share before dilution, SEK ¹⁾⁴⁾	7.81	6.36	4.15	3.64	2.02
Earnings per share after dilution, SEK ¹⁾⁴⁾	7.74	6.29	4.10	3.61	2.00
Dividend per share, SEK ⁴⁾	2.00	1.60	1.33	1.23	1.18
Equity per share, SEK ¹⁾⁴⁾	66.33	60.11	55.64	43.58	40.58
Number of permanent employees at year-end	24,481	21,479	19,002	18,153	18,073
Number of shares excluding treasury shares 31 December ⁴⁾	535,270,968	532,989,260	529,955,536	527,240,712	528,988,292
Average number of shares before dilution ⁴⁾	534,007,696	531,535,632	528,630,344	528,658,396	532,039,944
Average number of shares after dilution ⁴⁾	539,218,308	537,511,328	534,896,892	533,173,360	535,508,564

1) For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data

2) Adjusted for items affecting comparability

3) Cash conversion = operational cash flow / operating income

4) Comparison periods adjusted for share split 4:1

Parent company

The Parent Company includes units within the business areas Aeronautics, Dynamics, Surveillance as well as one unit within Combitech. Group staff and Group support are also included. A major part of the Group's operations is included in the Parent Company. Separate notes to the Parent Company's financial statements and a separate description of risks and uncertainties for the Parent Company have therefore not been included in this interim report.

Parent company income statement

MSEK	Jan-Jun 2025	Jan-Jun 2024	Full Year 2024
Sales	19,548	17,178	36,291
Cost of goods sold	-16,277	-14,283	-30,454
Gross income	3,271	2,895	5,837
Gross margin, %	16.7	16.9	16.1
Operating income and expenses	-2,423	-2,080	-4,188
Operating income (EBIT)	848	815	1,649
Operating margin, %	4.3	4.7	4.5
Financial income and expenses	730	134	2,443
Income after financial items	1,578	949	4,092
Appropriations	-	-	-824
Income before taxes	1,578	949	3,268
Taxes	-279	-230	-703
Net income for the period	1,299	719	2,565

Parent company balance sheet

MSEK Note	30 Jun 2025	31 Dec 2024	30 Jun 2024
ASSETS
Fixed assets:
Intangible fixed assets	1,371	1,234	1,169
Tangible fixed assets	7,362	6,410	5,986
Financial fixed assets	12,226	10,945	9,516
Total fixed assets	20,959	18,589	16,671
Current assets:
Inventories	13,503	12,530	11,270
Current receivables	26,070	25,375	23,740
Short term investments	5,610	8,852	5,634
Liquid assets	547	903	755
Total current assets	45,730	47,660	41,399
TOTAL ASSETS	66,689	66,249	58,070
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity:
Restricted equity	3,348	3,348	3,354
Unrestricted equity	15,750	15,390	13,416
Total shareholders' equity	19,098	18,738	16,770
Untaxed reserves, provisions and liabilities:
Untaxed reserves	4,750	4,750	3,926
Provisions	1,985	1,984	2,487
Liabilities 8	40,856	40,777	34,887
Total untaxed reserves, provisions and liabilities	47,591	47,511	41,300
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	66,689	66,249	58,070

Liquidity, financing, capital expenditures and number of permanent employees

The Parent Company's net debt amounted to SEK 5 002 million as of 30 June 2025 compared to a net liquidity of SEK 1 895 million at 31 December 2024. Investments in tangible fixed assets amounted to SEK 1 314 million (764). Investments in intangible assets amounted to SEK 336 million (117). At the end of the period, the Parent Company had 13 096 permanent employees compared to 12 250 at the beginning of the year.

Notes to the financial statements

Note 1 Corporate information

Saab AB (publ.), corporate identity no. 556036-0793, has its registered office in Linköping, Sweden. The company's head office is located at Olof Palmes gata 17, 5tr, SE-111 22 Stockholm, Sweden, telephone number +46-8-463 00 00. Saab's B shares are listed on Nasdaq Stockholm since 1998 and on the large cap list as of October 2006. The company's operations, including subsidiaries, associated companies and joint ventures, are described in the Annual and Sustainability Report 2024.

Note 2 Accounting principles

The interim report for the first half-year 2025 has been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. The Parent Company's accounts have been prepared in accordance with the Annual Accounts Act and the Swedish Corporate Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The Group's and the Parent Company's accounting principles are described on pages 160- 162, and concerning significant income statement and balance sheet items, in each note disclosure in the Annual Report 2024.

The interim report is condensed and does not contain all the information and disclosures in the annual report and should therefore be read together with the Annual Report 2024. All information on pages 1-30 constitutes the interim report for the first half-year 2025.

The Group and the Parent Company use the accounting principles and calculation methods as described in the Annual Report 2024. Important estimates and assumptions are disclosed in note 2 in the Annual Report 2024.

Note 3 Segment reporting

Saab is a leading high-technology company, with its main operations in defence, aviation and civil security. Operations are primarily focused on well-defined areas in defence electronics, missile systems, and naval systems as well as military and commercial aviation. Saab is also active in technical services and maintenance. Saab has a strong position in Sweden and the main part of sales is generated in Europe. In addition, Saab has a local presence in Australia, the U.S., South Africa, and in other selected countries. Saab's operating and management structure is divided into four business areas, which are also operating segments: Aeronautics, Dynamics, Surveillance and Kockums. In addition, Combitech, which provides consulting services, is an independent, wholly owned subsidiary of Saab. Corporate comprises Group staff and departments, a minority portfolio containing Saab's ownership interests in companies in various stages of development as well as other operations outside the core operations. The Group's operating segments recognise all lease contracts as expenses on a straight-line basis over the lease term.

Aeronautics

Aeronautics is a world-leading manufacturer of innovative aerial systems and is engaged in development of military aviation technology. It also conducts long-term future studies of manned and unmanned aircraft as preparation for new systems and further development of existing products.

Dynamics

Dynamics offers a market-leading product portfolio comprising ground combat weapons, missile systems, systems for training and simulation, signature management systems for armed forces around the world, and niche products for the civil and defence markets.

Surveillance

Surveillance provides efficient solutions for safety and security, for surveillance and decision support, and for threat detection, location, and protection. The portfolio covers airborne, ground-based and naval radar, electronic warfare and combat systems and C4I solutions.

Kockums

Kockums develops, delivers, and maintains world-class solutions for naval environments. Its portfolio includes submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, autonomous vessels, torpedoes and unmanned underwater vehicles. Kockums' unique competence is in signature management, impact strength and advanced stealth technology.

Combitech

Combitech is an independent subsidiary of Saab and from 1 July 2021 reported as an operating segment outside the business area structure within Saab Group. Combitech is one of the largest technology consulting firms in Sweden, combining technology with cutting-edge expertise to create solutions for its customers' specific needs. Combitech is active in aviation, defence, telecom and other industries as well as the public sector. Combitech offers services in systems development, systems integration, information security, systems security, communications, mechanics, technical product information and logistics.

Order bookings per operating segment

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024	Rolling 12 Months	Full Year 2024
Aeronautics	9,206	7,296	26	6,401	2,154	13,086	11,176
Dynamics	15,111	32,555	-54	7,003	26,964	32,849	50,293
Surveillance	15,270	13,314	15	8,189	7,385	30,490	28,534
Kockums	5,957	3,901	53	4,997	2,549	7,762	5,706
Combitech	2,660	2,480	7	1,315	1,397	4,817	4,637
Corporate	2,029	20		1,811	-12	2,343	334
Elimination	-2,686	-1,497		-1,313	-863	-5,071	-3,882
Total	47,547	58,069	-18	28,403	39,574	86,276	96,798

Order bookings per region

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024	Rolling 12 Months	Full Year 2024
Sweden	20,417	11,896	72	16,105	7,195	31,977	23,456
Rest of Europe	16,054	22,888	-30	5,713	15,793	28,664	35,498
North America	4,518	3,627	25	2,712	1,092	8,563	7,672
Latin America	3,383	851	298	2,020	125	2,769	237
Asia	1,771	4,229	-58	860	1,529	2,592	5,050
Africa	204	340	-40	146	8	218	354
Australia, etc.	878	720	22	525	314	3,035	2,877
Undisclosed countries	322	13,518	-98	322	13,518	8,458	21,654
Total	47,547	58,069	-18	28,403	39,574	86,276	96,798
Order backlog per operating segment
MSEK				30 Jun 2025	31 Dec 2024 30 Jun 2024

Order backlog per operating segment

	30 Jun 2025	31 Dec 2024	30 Jun 2024
Aeronautics	41,718	41,501	46,525
Dynamics	84,764	78,886	69,790
Surveillance	54,902	52,725	49,128
Kockums	15,664	14,360	16,798
Combitech	2,066	1,927	1,945
Corporate	2,360	743	680
Elimination	-3,922	-2,919	-2,145
Total	197,552	187,223	182,721

Order backlog per region

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
Sweden	57,876	52,520	54,913
Rest of Europe	68,141	60,540	56,251
North America	13,730	13,422	12,219
Latin America	15,263	13,565	17,231
Asia	7,974	9,550	11,475
Africa	724	699	787
Australia etc.	3,105	4,185	3,742
Undisclosed countries	30,739	32,742	26,103
Total	197,552	187,223	182,721

Sales per operating segment

MSEK	2025	Jan-Jun Jan-Jun Change, 2024	%	Q2 2025	2024	Q2 Change,	% 12 Months	Rolling Full Year 2024
Aeronautics	8,949	7,773	15	4,424	3,726	19	17,865	16,689
Dynamics	8,857	5,934	49	5,714	3,312	73	17,528	14,605
Surveillance	11,818	10,395	14	6,544	5,406	21	23,437	22,014
Kockums	4,641	4,163	11	2,388	2,197	9	8,842	8,364
Combitech	2,522	2,131	18	1,340	1,082	24	4,697	4,306
Corporate	473	281	68	300	193	55	800	608
Elimination	-1,682	-1,322		-924	-746		-3,195	-2,835
Total	35,578	29,355	21	19,786	15,170	30	69,974	63,751

Sales per region

MSEK	Jan-Jun 2025	% of sales	Jan-Jun 2024	% of sales	Full Year 2024	% of sales
Sweden	15,145	43	12,314	42	26,140	41
Rest of Europe	8,233	23	7,389	25	15,829	25
North America	3,268	9	3,146	11	6,148	10
Latin America	1,682	5	1,500	5	4,556	7
Asia	3,077	9	2,467	8	5,329	8
Africa	175	0	89	0	165	0
Australia, etc.	1,672	4	1,738	7	3,375	5
Undisclosed countries	2,326	7	712	2	2,209	4
Total	35,578	100	29,355	100	63,751	100

Information on large customers

During the first half-year 2025, Saab had one customer that separately accounted for 10 per cent or more of the Group's sales. The Swedish Defence is a customer of all business areas and total sales amounted to SEK 13,191 million (10,618) during the period.

Seasonal variation

A major part of Saab's business is related to large projects where the revenue is recognised by using the percentage of completion method. The costs incurred in these projects are normally lower during the third quarter compared to other quarters. The fourth quarter is also usually affected by a higher number of deliveries, mainly within Dynamics.

Operating income per operating segment

MSEK	Jan-Jun 2025	% of sales	Jan-Jun 2024	% of sales	Q2 2025	Q2	2024 12 Months	Rolling Full Year 2024
Aeronautics	616	6.9	533	6.9	249	257	1,060	977
Dynamics	1,655	18.7	961	16.2	1,194	594	3,259	2,565
Surveillance	1,026	8.7	821	7.9	588	416	2,196	1,991
Kockums	370	8.0	307	7.4	168	175	702	639
Combitech	231	9.2	215	10.1	113	93	458	442
Group segments' operating income	3,898	11.1	2,837	9.8	2,312	1,535	7,675	6,614
Corporate	-467		-315		-335	-204	-1,104	-952
Total	3,431	9.6	2,522	8.6	1,977	1,331	6,571	5,662

Depreciation/amortisation and write-downs per operating segment

MSEK	Jan-Jun 2025	Jan-Jun 2024	Change, %	Q2 2025	Q2 2024	Rolling 12 Months	Full Year 2024
Aeronautics	196	116	69	125	60	333	253
Dynamics	76	58	31	38	30	146	128
Surveillance	443	457	-3	224	229	1,033	1,047
Kockums	33	24	38	16	13	60	51
Combitech	7	6	17	5	3	17	16
Corporate	785	597	31	446	295	1,433	1,245
Total	1,540	1,258	22	854	630	3,022	2,740

Operational cash flow per operating segment

MSEK	Jan-Jun 2025	Jan-Jun 2024	Q2 2025	Q2 2024	Rolling 12 Months	Full Year 2024
Aeronautics	-3,489	-1,184	-1,219	-360	-3,017	-712
Dynamics	5,590	-1,883	262	-887	10,271	2,798
Surveillance	-2,451	75	-906	511	-1,193	1,333
Kockums	459	-152	1,106	-1,072	900	289
Combitech	142	247	37	112	427	532
Corporate	-1,401	-1,352	-416	-555	-1,792	-1,743
Total	-1,150	-4,249	-1,136	-2,251	5,596	2,497

Capital employed per operating segment

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
Aeronautics	15,976	12,136	12,057
Dynamics	5,229	5,342	6,566
Surveillance	15,340	12,142	12,011
Kockums	3,479	3,622	2,767
Combitech	1,238	1,348	1,134
Corporate/elimination	9,108	12,755	11,014
Total	50,370	47,345	45,549

Full time equivalents (FTEs) per operating segment

Number at end of the period	30 Jun 2025	31 Dec 2024	30 Jun 2024
Aeronautics	6,293	6,023	5,797
Dynamics	4,631	4,295	3,959
Surveillance	7,794	7,190	6,781
Kockums	2,519	2,410	2,303
Combitech	2,468	2,378	2,273
Corporate	2,417	2,227	2,102
Total	26,122	24,523	23,215

Note 4 Distribution of sales

	Aeronautics		Dynamics		Surveillance		Kockums		Combitech		Corporate/ elimination		Group
MSEK	Jan-Jun 2025	Jan-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Jun 2025	Jan-Jun 2024
External sales	8,902	7,736	8,679	5,821	11,409	10,059	4,453	4,103	1,665	1,355	470	281	35,578	29,355
Internal sales	47	37	178	113	409	336	188	60	857	776	-1,679	-1,322	-	-
Total sales	8,949 -	7,773 -	8,857 -	5,934 -	11,818 -	10,395 -	4,641 -	4,163 -	2,522 -	2,131 -	-1,209 -	-1,041 -	35,578 -	29,355 -
Sales by customer:
Military customers	8,230	7,198	8,519	5,729	10,614	9,174	4,241	3,828	980	652	174	115	32,758	26,696
Civilian customers	672	538	160	92	795	885	212	275	685	703	296	166	2,820	2,659
Total external sales	8,902 -	7,736 -	8,679 -	5,821 -	11,409 -	10,059 -	4,453 -	4,103 -	1,665 -	1,355 -	470 -	281 -	35,578 -	29,355 -
Sales by significant source:
Long-term customer contracts	8,389	7,204	2,394	2,860	8,168	6,853	3,039	2,350	-	-	170	121	22,160	19,388
Services	352	416	1,318	798	1,869	2,060	879	850	1,528	1,252	107	100	6,053	5,476
Products	161	116	4,967	2,163	1,372	1,146	535	903	137	103	193	60	7,365	4,491
Total external sales	8,902 -	7,736 -	8,679 -	5,821 -	11,409 -	10,059 -	4,453 -	4,103 -	1,665 -	1,355 -	470 -	281 -	35,578 -	29,355 -
Sales by domain:
Air	8,020	7,063	270	202	4,103	3,880	-	-	21	22	136	16	12,550	11,183
Land	89	83	7,356	5,018	2,621	2,300	-	-	967	647	16	26	11,049	8,074
Naval	2	6	1,006	569	3,844	2,928	4,453	4,103	4	2	106	136	9,415	7,744
Civil Security	16	13	22	17	822	937	-	-	180	190	36	37	1,076	1,194
Commercial Aeronautics	774	563	-	-	2	3	-	-	6	5	6	9	788	580
Other/not distributed	1	8	25	15	17	11	-	-	487	489	170	57	700	580
Total external sales	8,902 -	7,736 -	8,679 -	5,821 -	11,409 -	10,059 -	4,453 -	4,103 -	1,665 -	1,355 -	470 -	281 -	35,578 -	29,355 -
Sales recognition method:
Over time	7,594	6,750	3,404	3,385	8,814	7,631	4,230	3,857	1,654	1,355	208	127	25,904	23,105
Point in time	1,308	986	5,275	2,436	2,595	2,428	223	246	11	-	262	154	9,674	6,250
Total external sales	8,902	7,736	8,679	5,821	11,409	10,059	4,453	4,103	1,665	1,355	470	281	35,578	29,355

Note 5 Items affecting comparability

Item affecting comparability	Business Area	Line item	Jan-Jun 2025	Jan-Jun 2024	Q2 2025	Q2 2024	Full Year 2024
Non-recurring contribution from minority portfolio	Corporate	Share of income in associated companies and joint ventures	105	-	105	-	-
Capital gain from divestment of Combitech Norway	Combitech	Other operating income	-	-	-	-	18
Remeasurement of contingent consideration payable	Surveillance	Other operating income	-	-	-	-	112
Write-down of intangible assets related to acquired customer relations	Surveillance	Marketing expenses	-		-		-72
Total			105	-	105	-	58

The items affecting comparability in the second quarter 2025 and the full year 2024 are included in the operating income of the group. Operating income adjusted for items affecting comparability is not reported for the second quarter 2025, the first half-year 2025 or the full year 2024.

Note 6 Dividend to Parent Company's shareholders

The Annual General Meeting 2025 held on 10 April decided on a dividend to the Parent Company's shareholders of SEK 2.00 per share, corresponding to a total dividend of SEK 1,073 million. The dividend is paid out in two equal instalments. Record date for the first instalment was 14 April 2025 and the dividend was paid out on 17 April 2025. At the second instalment, SEK 1.00 per share will be paid on 10 October 2025 with the record date 7 October 2025.

Note 7 Intangible fixed assets

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
Goodwill	5,372	5,572	5,516
Capitalised development costs	6,025	6,052	6,083
Other intangible assets	1,497	1,374	1,416
Total	12,894	12,998	13,015

Note 8 Net liquidity/debt

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
Assets:
Liquid assets	2,154	2,843	1,810
Short-term investments	5,659	8,898	5,686
Total liquid investments	7,813	11,741	7,496
Short-term interest-bearing receivables	68	73	77
Long-term interest-bearing receivables	262	241	278
Long-term receivables attributable to pensions	79	79	59
Long-term interest-bearing financial investments	2,887	1,610	590
Total interest-bearing assets	11,109	13,744	8,500
Liabilities:
Lease liabilities	2,693	3,032	2,761
Bonds and other debt instruments	7,077	7,193	7,469
Liabilities to associated companies
and joint ventures	49	55	53
Other interest-bearing liabilities	74	104	62
Provisions for pensions ¹⁾	526	1,149	509
Total interest-bearing liabilities and provisions for
pensions	10,419	11,533	10,854
Net liquidity (+) / net debt (-)	690	2,211	-2,354

1) Excluding provisions for special employers' contribution attributable to pensions.

Committed credit lines

MSEK	Facilities	Drawings		Available
Revolving credit facility (Maturity 2026 SEK 6 billion)	6,000		-	6,000
Overdraft facility (Maturity 2025)	85		-	85
Total	6,085		-	6,085
Parent Company
MSEK		30 Jun 2025	31 Dec 2024	30 Jun 2024
Long-term bonds and other debt instruments		5,819	7,073	7,074
Short-term bonds and other debt instruments		1,250	114	317
Total		7,069	7,187	7,391

Saab has a Medium Term Note (MTN) programme with a framework of SEK 15,000 million, enabling the issuance of long-term loans on the capital market. The programme was established in 2009 with a framework of SEK 3,000 million and has since been increased in three steps. During the second quarter 2025, the framework was increased from SEK 10,000 million. At of the end of the quarter, bonds outstanding under the MTN programme amounted to SEK 6,870 million.

SEK 114 million matured during the quarter and no new bonds were issued or repurchased.

Note 9 Capital employed

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
Total assets	105,891	99,823	87,695
Less non-interest bearing liabilities	55,521	52,478	42,146
Capital employed	50,370	47,345	45,549

Note 10 Financial instruments

Classification and categorisation of financial assets and liabilities²⁾

Carrying amount	30 Jun 2025	31 Dec 2024	30 Jun 2024
Financial assets:
Valued at amortised cost ⁴⁾:
Accounts receivable, contract assets and other
receivables	30,206	27,482	25,556
Liquid assets	2,154	2,843	1,810
Long-term receivables	379	356	408
Valued at fair value through profit and loss ³⁾:
Short-term interest-bearing investments	5,388	8,898	5,686
Derivatives for trading	143	17	38
Financial investments	213	237	226
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	2,346	913	928
Equity investments elected to be classified as fair value
through other comprehensive income	2,441	2,526	2,218
Interest-bearing investments	3,158	1,610	590
Total financial assets	46,428	44,882	37,460
Financial liabilities:
Valued at amortised cost:
Interest-bearing liabilities ¹⁾	9,893	10,384	10,345
Other liabilities ⁴⁾	17,236	15,977	14,037
Valued at fair value through profit and loss ³⁾:
Contingent consideration payable	18	19	129
Derivatives for trading	25	64	58
Valued at fair value through other comprehensive income ³⁾:
Derivatives identified as hedges	615	2,380	1,416
Total financial liabilities	27,787	28,824	25,985
¹⁾ Fair value	10,092	10,617	10,582

^²⁾ Derivatives with positive values are recognised as assets and derivatives with negative values are recognised as liabilities. Derivatives with a legal right of offset amount to SEK 617 million.

^³⁾ The impact of credit risk on these instruments is considered low given the limits in the current investment policy.

^⁴⁾ Carrying amount, in Saab's assessment, essentially corresponds to fair value.

The Group has used the same valuation methods as in the year-end closing of 2024, as described in the Annual Report 2024 on page 203, note 35. As of 30 June 2025, the Group had the following financial assets and liabilities at fair value:

Financial assets at fair value

MSEK	30 Jun 2025	Level 1	Level 2	Level 3
Bonds and interest-bearing securities	8,546	8,546	-	-
Forward exchange contracts	2,342	-	2,342	-
Currency options	14	-	14	-
Interest rate swaps	121	-	121	-
Electricity derivatives	12	12	-	-
Shares and participations	2,654	-	-	2,654
Total	13,689	8,558	2,477	2,654

Financial liabilities at fair value

MSEK	30 Jun 2025	Level 1	Level 2	Level 3
Forward exchange contracts	595	-	595	-
Currency options	10	-	10	-
Interest rate swaps	11	-	11	-
Electricity derivatives	24	24	-	-
Contingent consideration payable	18	-	-	18
Total	658	24	616	18

Movements in the group's Level 3 financial instruments were as follows:

MSEK	Unlisted shares and participations	Contingent consideration payable
Opening balance, 1 January 2025	2,763	19
Acquisitions	1	-
Gains/losses recognised in the income statement	-24	-
Gains/losses recognised in other comprehensive income	-86	-
Foreign currency translation	-	-1
Closing balance, 30 June 2025	2,654	18

Note 11 Supplemental information on statement of cash flows

Free cash flow

MSEK	Jan-Jun 2025	Jan-Jun 2024	Q2 2025	Q2 2024	Full year 2024
Cash flow from operating activities before changes in working capital, excluding taxes and other financial items ¹⁾	5,114	3,561	3,006	1,913	8,269
Cash flow from changes in working capital:
Contract assets and liabilities	-634	-857	-1,265	914	7,218
Inventories	-2,771	-2,887	-465	-1,292	-4,890
Other current receivables	-51	-2,596	-2,000	-2,318	-5,464
Other current liabilities	816	1,323	1,539	39	3,589
Provisions	-282	-605	-165	-458	-1,456
Change in working capital	-2,922	-5,622	-2,356	-3,115	-1,003
Cash flow from operating activities excluding taxes and other financial items	2,192	-2,061	650	-1,202	7,266
Investing activities:
Investments in intangible fixed assets	-698	-370	-387	-208	-827
Investments in tangible fixed assets	-2,655	-1,842	-1,407	-844	-4,012
Sales and disposals of tangible fixed assets including biological assets	11	24	8	3	70
Cash flow from investing activities ²⁾	-3,342	-2,188	-1,786	-1,049	-4,769
Operational cash flow	-1,150	-4,249	-1,136	-2,251	2,497
Taxes and other financial items	-613	-619	-182	-245	-1,224
Investments in and sale of financial assets, associated companies and joint ventures	-6	-13	-4	-11	-290
Investments in operations	-	-15	-	-	-15
Sale of subsidiaries and other operations	-	-	-	-	25
Free cash flow	-1,769	-4,896	-1,322	-2,507	993

1) Including amortisation of lease liabilities

2) Cash flow from investing activities excluding change in short-term investments and other interest-bearing financial assets and excluding sale of and investment in financial assets, operations and subsidiaries. If investments in and sale of financial fixed assets are considered to be of operating nature, the item is included in investing activities.

Free cash flow vs. statement of cash flows

MSEK	2025	Jan-Jun Jan-Jun 2024	Q2 2025	2024	Q2 Full Year 2024
Free cash flow	-1,769	-4,896	-1,322	-2,507	993
Investing activities – interest-bearing:
Short-term investments	3,266	5,677	1,227	2,791	2,471
Other financial investments and receivables	-1,342	-590	-377	-590	-1,604
Financing activities:
Repayments of loans	-151	-341	-151	-	-678
Raising of loans and increase in other interest-bearing liabilities	-	230	-1	230	331
Dividend paid to the Parent Company's shareholders	-537	-427	-537	-427	-856
Dividend paid to non-controlling interest	-23	-28	-	-28	-41
Transactions with non-controlling interest	50	-	50	-	-
Cash flow for the period	-506	-375	-1,111	-531	616

Liquid assets

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
The following components are included in liquid assets:
Cash and bank balances Bank deposits	1,954 200	2,543 300	1,810 -
Total according to balance sheet	2,154	2,843	1,810
Total according to statement of cash flows	2,154	2,843	1,810

Note 12 Business combinations

No acquisitions or divestments took place in the first half-year 2025.

Note 13 Defined-benefit plans

Saab has defined-benefit pension plans where post-employment compensation is based on a percentage of the recipient's salary. Definedbenefit plans mainly relate to the Swedish operations, where the ITP2 plan accounts for more than 90 per cent of the total obligation.

Pension obligation according to IAS 19

MSEK	30 Jun 2025	31 Dec 2024	30 Jun 2024
Defined-benefit obligation	11,100	10,969	10,066
Special employers' contribution	83	238	75
Less assets under management	10,653	9,899	9,616
Total provisions for pensions	530	1,308	525
of which reported as long-term receivable	79	79	59

Actuarial gains and losses are recognised in other comprehensive income. The actuarial gain related to the Swedish pension plans amounted to SEK 702 million net in the first half-year 2025 due to the following:

The assumed discount rate was unchanged from 31 December 2024 and amounted to 3.75 per cent. Also, the inflation assumption was unchanged during the first half-year at 1.75 per cent.

Negative experience adjustments resulted in an actuarial loss of SEK 16 million.

The return on assets under management was SEK 753 million which resulted in an actuarial gain of SEK 578 million.

The actuarial gain related to the special employer's contribution amounted to SEK 140 million.

Note 14 Contingent liabilities

No additional significant commitments have arisen during the first halfyear 2025. With regard to the Group's so-called performance guarantees for commitments to customers, the likelihood of an outflow of resources is estimated as remote and, as a result, no value is recognised.

Note 15 Transactions with related parties

No significant transactions with related parties have occurred during the first half-year 2025. Related parties with which the Group has transactions are described in note 37 in the Annual Report 2024.

Note 16 Definitions

Below are definitions of financial key ratios that are used in the report. For more information and explanations regarding the usage of these key ratios, please see www.saab.com/investors/financials/financial-data.

Capital employed

Total assets less non-interest-bearing liabilities.

Cash conversion

Operational cash flow divided by operating income (EBIT).

Earnings per share

Net income for the period attributable to the Parent Company's shareholders, divided by the average number of shares before and after full dilution.

EBITDA

Operating income before depreciation/amortisation and write-downs.

EBITDA adjusted for items affecting comparability

Operating income before depreciation/amortisation and write-downs adjusted for items classified as affecting comparability.

EBITDA margin

Operating income before depreciation/amortisation and write-downs as a percentage of sales.

EBITDA margin adjusted for items affecting comparability

Operating income before depreciation/amortisation and write-downs adjusted for items affecting comparability as a percentage of adjusted sales.

Effective tax rate

Current and deferred taxes as a percentage of income before tax.

Equity/assets ratio

Equity in relation to total assets.

Equity per share

Equity attributable to the Parent Company's shareholders divided by the number of shares, excluding treasury shares and shares repurchased through equity swaps, at the end of the period.

Free cash flow

Cash flow from operating activities including amortisation of lease liabilities and cash flow from investing activities, excluding acquisitions and divestments of short-term investments and other interest-bearing financial assets.

Free cash flow per share

Free cash flow divided by the average number of shares after dilution.

Full Time Equivalent, FTE

Refers to the number of full-time equivalent employees. Excludes longterm absentees and consultants but includes fixed term employees and part-time employees.

Gross income adjusted for items affecting comparability

Gross income adjusted for items classified as affecting comparability.

Gross margin

Gross income as a percentage of sales.

Gross margin adjusted for items affecting comparability

Gross income adjusted for items affecting comparability as a percentage of adjusted sales.

Items affecting comparability

Items affecting comparability comprise the financial effects from events or transactions with material impact that are relevant to understand the result when comparing periods. Such events or transactions can relate to restructuring programs, costs related to disputes and legal proceedings, macroeconomic developments, impairment charges and gains and losses from divestments of group companies, joint ventures or associated companies.

Net investments

Investments, sales and disposals of intangible and tangible fixed assets.

Net liquidity/net debt

Liquid assets, short-term investments and interest-bearing receivables less interest-bearing liabilities and provisions for pensions excluding provisions for pensions attributable to special employers' contribution.

Net liquidity/net debt to EBITDA

End of period Net liquidity/net debt divided by 12-month rolling reported EBITDA.

Number of permanent employees

Headcount of all employed by the company, excluding fixed term employees and consultants.

Operating income

Income before financial items and tax.

Operating income adjusted for items affecting comparability

Operating income (EBIT) adjusted for items classified as affecting comparability.

Operating margin

Operating income (EBIT) as a percentage of sales.

Operating margin adjusted for items affecting comparability

Operating income adjusted for items affecting comparability as a percentage of adjusted sales.

Operational cash flow

Cash flow from operating activities, excluding taxes and other financial items, amortisation of lease liabilities and investments, sales and disposals of intangible and tangible fixed assets.

Order backlog

Total value of orders at the end of the period.

Order bookings

Total value of orders received during the period.

Organic sales growth

Change in sales in percentage adjusted for effects from exchange rate due to the translation of foreign subsidiaries, and structural changes such as acquisitions and divestments of subsidiaries.

Research and development, R&D

Research and development costs are recognised separately in the income statement and comprise the cost of self-financed new and continued product development as well as amortisation and any writedown of capitalised development costs.

Research and development expenditures comprise both expenses incurred as costs excluding amortisation and write-downs, and expenses capitalised as development costs in the statement of financial position.

Total R&D expenses also include the part of Saab's R&D that is conducted in cooperation with customers, which is reported as cost of goods sold.

Return on capital employed

Operating income plus financial income (rolling 12 months) as a percentage of average capital employed.

Return on equity

Net income for the period (rolling 12 months) as a percentage of average equity.

Sales adjusted for items affecting comparability

Sales adjusted for items classified as affecting comparability.

Glossary

AEW&CS	Airborne Early Warning & Control System
CDP	Global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts
C-UAS	Counter-Unmanned Aircraft Systems
FMV	Swedish Defence Materiel Administration, Sw, "Försvarets materielverk"
FRN	Floating Rate Note
IAS	International Accounting Standards
IFRS	International Financial Reporting Standards
MTN	Medium Term Note, loan facility for issuance of bonds with a duration of 1-15 years
MTM	Maritime Traffic Management
NSPA	NATO Support and Procurement Agency
NLAW	Next Generation Light Anti-Tank Weapon
SBTi	Science Based Targets initiative
UAV	Unmanned Aerial Vehicle

The Board of Directors and the President and CEO have ensured that the half-year report provides an accurate overview of the Parent Company's and the Group's operations, financial position and results, and that it describes the significant risks and uncertainties faced by the Parent Company and the companies in the Group.

Stockholm 18 July 2025

Saab AB (publ)

Marcus Wallenberg

Chairman

Bert Nordberg Board member

Lena Erixon Board member Henrik Henriksson Board member

Danica Kragic Jensfelt Board member

Johan Menckel Board member

Erika Söderberg Johnsson Board member

Sebastian Tham Board member

Anders Ynnerman Board member

Stefan Andersson Board member

Göran Andersson Board member

Joakim Westh Board member

Magnus Gustafsson Board member

Micael Johansson

President and CEO and Board member

This half-year report has not been subject to review by the company's auditors.

Merton Kaplan, Head of Investor Relations +46 734 18 20 71

Adam Solberg, Investor Relations Manager +46 734 46 62 58

Media and financial analyst conference:

18 July 2025 at 10.00 (CEST)

Live webcast: www.saab.com/investors/webcast/q2-2025 Conference call: Registration for the conference call: www.saab.com/investors/conference-call-q2

The interim report, presentation material and the webcast will be available on www.saab.com/investors

Calendar

Q3 Interim report 2025 Published 24 October 2025

Year-end report 2025 Published 5 February 2026

Important information

This interim report may contain forward-looking statements which reflect Saab AB's current view on future events and financial and operational development. Words such as "intend", "expect", "anticipate", "may", "believe", "plan", "estimate" and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements.

This information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 18 July 2025 at 07.30 (CET).