Saab’s Q2 Report Looms as GlobalEye Uncertainty and Portfolio Restructuring Test Investor Patience
28.06.2026 - 16:17:58 | boerse-global.de
Swedish defense contractor Saab has been busy on multiple fronts – selling off a non-core unit, winning radar contracts in Denmark and France, and pushing to close a strategic surveillance aircraft deal in Canada. Yet the company’s stock continues to drift, trading near a 52-week low at $24.97, down nearly 18% since the start of the year. The market’s skepticism is all the more striking given a record order backlog that, at the end of 2025, stood at over 274 billion Swedish kronor before settling to a still-lofty 120 billion kronor more recently.
The long-running GlobalEye saga in Canada is one factor weighing on sentiment. Saab has been in exclusive talks for a contract to supply the airborne early warning system, but a rival publicly criticized the process and raised concerns about data compatibility with American F-35 jets. Chief executive Micael Johansson moved quickly to defuse the issue in late June, stating the company can integrate any data-link system a customer demands. A final agreement has yet to be signed, however, leaving the deal in limbo.
Elsewhere, Saab’s radar business is showing healthy momentum. Denmark bought several Giraffe systems after months of testing, France ordered 17 units in May, and the U.S. Army placed an order for ten radars destined for the Baltics. The company is also looking to European Union defense funds for the next growth wave, teaming up with Lockheed Martin to bid for a 250-million-euro border surveillance project. Brussels is expected to decide on the award in September.
Should investors sell immediately? Or is it worth buying Saab?
Management, meanwhile, continues to streamline the portfolio. In June, Saab sold its public safety solutions division to Norway’s Omda AS for an upfront payment of 15 million kronor, with potential milestone payments to follow. The transaction, which covers 75 employees, is set to close in the fourth quarter of 2026. The move sharpens the company’s focus on its core military business, which has already pushed the order book to record levels.
Analysts see the current share price as oversold. Pareto Securities recently upgraded Saab from “hold” to “buy,” setting a price target of 620 kronor. The broker argues that valuation has become attractive: the enterprise value-to-operating profit ratio has nearly halved over the past year. With a relative strength index of 33.5, the stock is approaching oversold territory. Still, the market has shrugged off such calls so far.
All eyes now turn to July 17, when Saab reports second-quarter earnings. Pareto expects revenue growth of 18% and a double-digit operating margin, though order intake could disappoint. The anticipated Polish submarine contract, worth around 26 billion kronor, is likely to slip into the second half of the year. Investors will also be watching operating cash flow closely. If the numbers meet or beat expectations, the current support near $23.29 – the 52-week low – could hold. A miss would almost certainly test it again.
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