Last Friday, the Swedish government announced a SEK 5bn (€ 450m) investment package to strengthen national defence capabilities, including SEK 3.5bn (€ 320m) dedicated to anti-drone systems and SEK 1.5bn for upgrades to the Gripen fighter jet. This measure represents a major reinforcement of Sweden’s defence posture and is highly relevant for Astor, notably its subsidiary Oscilion, which manufactures the Astor Eclipse drone jammer.

Oscilion is one of very few companies globally and the only one in Sweden capable of delivering a field-proven electronic warfare jammer. Given the Swedish government’s emphasis on domestic sourcing for critical defence technologies, we view Oscilion as a front-runner for potential orders stemming from this new budget. Comparable products exist only in the US and Israel, making a local solution both politically and logistically compelling.

Assuming 10-20% of the SEK 3.5bn anti-drone allocation flows into jammer procurement, the implied market potential for Astor could reach SEK 350-700m, a substantial upside to current orders. So far, only two orders for Eclipse have been announced (May 2025: SEK 21m; July 2025: SEK 15m), both from undisclosed “Western world countries”. With production already scaling, this new government initiative could serve as a blueprint for larger serial contracts and establish Sweden as a reference customer with other European countries to follow.

Recent incidents involving drone disruptions at European airports (e.g., Denmark, Munich) underscore the urgent need for counter-UAV technologies. As defence ministries and civil agencies accelerate procurement, Astor is well positioned with a ready-to-deploy, battle-tested solution. Most competitors remain in R&D phases, while Oscilion’s product is market-ready after years of development.

Despite the robust newsflow and structural tailwinds, Astor’s share price has underperformed recently, confirming our view that the market has yet to price in the potential upside from today’s announcement. Consequently, the upside potential has grown even further and should pose an ideal opportunity to enter or build up a position. Therefore, we reiterate our BUY recommendation and maintain Astor in the NuWays AlphaList with an unchanged PT of SEK 56.00, based on DCF.