Saab Announces Medium-term Financial Targets
Saab today announces new medium-term financial targets for the period 2023-2027. These medium-term targets replace Saab’s long-term targets on sales growth and operating income. The new targets are provided on the back of improved growth opportunities from increased market demand and Saab’s significant order backlog.
Saab’s medium-term targets for the period 2023-2027 are the following:
- An organic sales growth of around 10 percent (compound annual growth rate)
- Operating income growth to be higher than the organic sales growth
- Cash-flow conversion of minimum 70 percent, cumulative for the 5-year period
Cash-flow conversion is defined as operational cash flow divided by operating income, cumulative for the 5-year period.
“With a new market reality and the multi-domestic strategy we have put in place the last couple of years, we continue to be a company with substantial growth opportunities,” says Micael Johansson, President and CEO of Saab.
Saab has decided to replace its previous long-term targets with the new medium-term targets. The previous long-term target of on average 5-percent organic sales growth per year and an operating margin of 10 percent over a business cycle, are therefore no longer valid.
Saab today hosts a capital markets day, starting at 09.00 CET, that can be accessed on this link: https://www.saab.com/investors/webcast/CMD-2023
For further information, please contact:
Mattias Rådström, Head of Media Relations
+46 (0)734 180 018,
[email protected]
Merton Kaplan, Head of Investor Relations
+46 (0)734 182 071
[email protected]
www.saab.com
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Saab is a leading defence and security company with an enduring mission, to help nations keep their people and society safe. Empowered by its 18,000 talented people, Saab constantly pushes the boundaries of technology to create a safer, more sustainable and more equitable world. Saab designs, manufactures and maintains advanced systems in aeronautics, weapons, command and control, sensors and underwater systems. Saab is headquartered in Sweden. It has major operations all over the world and is part of the domestic defence capability of several nations.
