For Poland, the acquisition forms the centrepiece of its long-awaited Orka submarine modernisation programme.
Poland has formally signed a landmark defence agreement with Swedish aerospace and defence group Saab, committing approximately $4.8 billion (£3.5 billion) to acquire three advanced A26 submarines. The contract represents one of the largest naval procurement deals in Central Europe in recent years and signals a decisive step in Warsaw’s long-term strategy to strengthen maritime security across the Baltic Sea. The agreement also reinforces industrial ties between Poland and Sweden at a time when European nations continue to increase defence investment amid a rapidly evolving security landscape.
The agreement, valued at around 47 billion Swedish kronor, extends beyond the construction of the submarines themselves. It includes a comprehensive weapons package alongside long-term training, maintenance and operational support. According to Saab, deliveries will continue through to 2038, reflecting both the complexity of modern submarine production and the long operational lifespan expected from these next-generation vessels.
For Poland, the acquisition forms the centrepiece of its long-awaited Orka submarine modernisation programme. The country’s existing underwater fleet has become increasingly outdated, creating an urgent requirement for more capable and technologically advanced platforms. The A26 submarines are designed to deliver enhanced stealth, intelligence gathering, surveillance and underwater combat capabilities, providing Poland with significantly improved operational flexibility in the Baltic region.
The timing of the agreement is particularly significant. Europe has witnessed an unprecedented acceleration in defence spending since the outbreak of the war in Ukraine, with governments prioritising military readiness, supply chain resilience and regional deterrence. Poland has emerged as one of NATO’s fastest-growing defence investors, committing substantial resources to modernising its armed forces across land, air and naval domains. The submarine programme complements previous investments in missile systems, fighter aircraft, armoured vehicles and air defence infrastructure, further strengthening the country’s strategic position on NATO’s eastern flank.
For Saab, the Polish contract marks one of the most commercially significant export victories in the company’s recent history. The Swedish defence manufacturer has steadily expanded its international presence through products ranging from fighter aircraft and radar systems to naval technologies. Securing Poland as a submarine customer validates the competitiveness of Saab’s A26 platform in an increasingly contested global defence market, where European, Asian and North American manufacturers continue to compete aggressively for major naval contracts.
The deal is also expected to generate substantial industrial cooperation between the two countries. Swedish officials have highlighted that the partnership extends beyond equipment procurement, creating opportunities for long-term collaboration in maintenance, technology transfer and defence manufacturing. Earlier plans outlined by Saab indicate that certain production activities will be distributed across multiple facilities, while maintenance and lifecycle support will include infrastructure within Poland, helping to strengthen the country’s domestic defence industry and technical expertise.
From a wider European perspective, the agreement reflects a broader shift towards regional defence cooperation. Rather than relying exclusively on suppliers outside Europe, governments are increasingly supporting intra-European procurement programmes that enhance both military capability and industrial competitiveness. Sweden’s growing integration into NATO further reinforces the strategic value of closer defence collaboration with neighbouring allies such as Poland, particularly in securing critical maritime routes throughout the Baltic Sea.
Financially, the contract provides Saab with long-term revenue visibility stretching well into the next decade. Large-scale defence programmes typically generate stable income streams through manufacturing, upgrades, maintenance contracts and support services, making them highly valuable for investors seeking predictable long-term growth. The inclusion of weapons integration, training and technical support further increases the lifetime value of the agreement beyond the initial acquisition cost.
As geopolitical uncertainty continues to reshape defence priorities across Europe, Poland’s investment demonstrates how military modernisation has become inseparable from economic and industrial policy. The Saab submarine programme is not merely a procurement contract; it represents a strategic investment in national security, advanced manufacturing and regional cooperation. For both Poland and Sweden, the agreement strengthens defence capabilities while deepening economic partnerships that are likely to shape European security architecture for decades to come.