Saab balances strong order book with submarine project cost overruns

Swedish defense company Saab AB said Wednesday it has secured a 510 million Swedish kronor order from Denmark for its Carl-Gustaf M4 weapon system.

The contract with the Danish Ministry of Defence includes ammunition and training equipment, with deliveries scheduled between 2026 and 2028, according to the company.

The deal is the latest in a series of wins for Saab, which recently secured major contracts for its Gripen fighter jets and future combat air systems, prompting it to raise its full-year sales forecast last month.

This strong order intake, however, comes as the company manages significant challenges in its naval division.

Costs for two new Blekinge-class submarines for the Swedish navy have nearly tripled from their original budget, and the project has faced significant delivery delays.

Regarding the new Danish order, the company highlighted the long-standing relationship.

“Carl-Gustaf M4 offers unmatched precision, portability, and a wide range of ammunition options, ensuring that Danish forces are well-equipped to handle diverse and evolving threats,” said Görgen Johansson, head of Saab’s business area Dynamics.

Denmark has used the Carl-Gustaf system, a man-portable recoilless rifle, since the 1970s.