Record Sales and Orders in European Defense Industry

European defense giants Saab and Kongsberg have kicked off the 2024 earnings season with impressive growth, marking another year of record sales and orders as military spending continues to surge across the continent in response to Russian aggression.

Sweden’s Saab, renowned for its Gripen fighter jets and Carl-Gustaf recoilless rifles, reported a 24% jump in orders, reaching 96.8 billion Swedish kronor (US$8.9 billion) in 2024. This has raised their backlog to an all-time high of 187 billion kronor. Key orders include Gripen jets for Hungary, radar systems, air defense, GlobalEye surveillance planes, and a landmark order from Poland for the Carl-Gustaf system.

Norway’s Kongsberg also experienced a significant uptick, with a 44% increase in defense and aerospace orders to 54.4 billion Norwegian kroner ($4.85 billion). The company secured its largest-ever missile order from the U.S. Navy, alongside air-defense battery purchases from the Netherlands. Kongsberg’s defense and aerospace order book stood at a record 101 billion kroner by the end of December, up 54% from the previous year.

The surge in defense orders is a direct reflection of the global shift towards greater military spending, driven by ongoing geopolitical tensions, particularly following Russia’s invasion of Ukraine. In 2023, global military spending rose for the ninth consecutive year, hitting a staggering $2.44 trillion. Europe, in particular, has seen significant increases in defense budgets, with the European Union set to allocate a record €326 billion in 2024.

Saab CEO Micael Johansson highlighted the strong demand for defense capabilities, forecasting continued growth in European defense spending regardless of decisions on NATO and joint European defense programs. Johansson also remarked on the upcoming NATO summit in The Hague, which is expected to set higher defense spending targets as members push for increased outlays beyond the current 2% GDP threshold.

Both Saab and Kongsberg are also expanding their international presence, with Saab securing orders for Gripens from Thailand, and Kongsberg’s defense products drawing interest from NATO countries and partners across Europe. The companies are positioning themselves for the future by investing in missile factories in the U.S. and Australia, as well as developing cutting-edge unmanned aircraft concepts to complement their existing fighter jets.

Meanwhile, France continues its efforts to modernize its military capabilities. The French Ministry of Armed Forces has placed an order for 530 additional Serval Appui Scorpion vehicles as part of its SCORPION program, aimed at enhancing the French Army’s armored fleet. This acquisition, expected to be delivered between 2025 and 2031, further strengthens the role of the Serval vehicle, known for its versatility, mobility, and advanced communications systems, in the Army’s rapid deployment forces.

As tensions rise and defense needs escalate, the European defense industry shows no signs of slowing down, with leading companies like Saab, Kongsberg, and others poised to meet the increasing demand for military hardware and innovation.