BofA Sees Upside Potential for Saab's Upcoming Q3 Earnings

02:16 AM EDT, 10/19/2026 (MT Newswires) -- BofA Global Research anticipates a potential third-quarter earnings beat for Saab (SAAB-B.ST) ahead of its report on Friday, citing the company's better-than-expected order momentum and accelerating output in its surveillance and dynamics units. "We expect orders to beat consensus by 19%, given the momentum in disclosed orders throughout the quarter. Our Q3 revenue forecasts are 5% ahead of consensus, driven particularly by Surveillance (+16% vs consensus) and Dynamics (+4% vs consensus). Revenue growth should accelerate in Surveillance as the comparative base eases materially from Q2. We forecast Surveillance revenues up 55% YoY versus consensus at 35%. Dynamics also benefits from a significantly easier comparison versus Q2, supporting our forecast for 46% revenue growth. We forecast 33% revenue growth in Q3'26 (vs consensus +26%)," according to a third-quarter earnings preview report. The research firm highlighted the Swedish defense and security company's disclosed third-quarter orders of 47.5 billion kronor, representing over four times the value a year ago. BofA said undisclosed contracts could drive further order intake upside, as disclosed awards historically capture only a fraction of total quarterly orders. Analysts added that their third-quarter operating profit estimate is 11% higher than market expectations, backed by a 10% operating margin forecast that is 40 basis points ahead of consensus. Free cash flow is also expected to show "significant" improvement in the second half as advance payments from large, previously announced export contracts improve cash conversion and working capital. BofA reiterated its buy rating and price objective of 720 kronor on the stock.