Cohort’s ELAC Unit Secures €140.7m Sonar Deal With Saab
Cohort plc’s ELAC SONAR business has secured a major €140.7 million sonar-related agreement with Saab, marking a significant development for the UK-listed technology group and strengthening its position in the European naval defence market.
The deal highlights the growing importance of advanced underwater sensing technology as European nations increase investment in naval capabilities, submarine fleets and maritime security. For Cohort, the agreement also underlines the strategic value of ELAC SONAR, the German-based specialist that became part of the group in 2020.
ELAC SONAR operates from Kiel, Germany, and supplies hydro-acoustic systems to navies, shipyards and defence-system integrators. Its portfolio includes submarine combat sonar, anti-submarine warfare systems, underwater communications, hydrophones and other acoustic technologies.
ELAC SONAR Strengthens Its Relationship With Saab
The €140.7 million agreement represents an important opportunity for ELAC SONAR as it works alongside major European defence companies. Saab has extensive capabilities across naval systems, sensors, combat management and underwater technology, making the relationship strategically relevant for ELAC’s growth.
Saab has also been expanding its role in European naval programmes. In July 2026, the Swedish defence company announced an order worth approximately SEK 8.7 billion from German naval defence company TKMS to equip and integrate combat systems, composite structures and sensors on four new German Navy MEKO A-200 DEU frigates. Saab said deliveries under that contract are scheduled between 2029 and 2032.
Against this wider backdrop, ELAC’s agreement with Saab gives investors another indication of how specialist sonar technology can become an important component of larger naval programmes.
Why the Deal Matters
Sonar systems are critical to modern naval operations because they allow vessels and submarines to detect, classify and track objects and acoustic signals beneath the surface. These capabilities are particularly important for anti-submarine warfare, mine detection, underwater surveillance and navigation.
ELAC SONAR says its systems cover a broad range of applications, including surveillance, anti-submarine warfare, mine and collision avoidance, underwater communications and measurement systems. The company also develops transducers, hydrophones and integrated sonar arrays.
The size of the reported Saab agreement therefore puts the latest development in a broader strategic context. It is not simply about selling an individual piece of equipment; it demonstrates the potential for specialist underwater technologies to become embedded within major naval programmes.
ELAC SONAR’s Role Within Cohort
ELAC SONAR joined Cohort after the group completed its acquisition of Wärtsilä ELAC Nautik GmbH in December 2020. At the time, Cohort described the business as a market leader in sonar technology for naval surface ships and submarines.
The acquisition expanded Cohort’s maritime defence offering and added capabilities in sonar, underwater communications and echo-sounder technology. ELAC also brought an established international customer base and a strong presence in European and Asian naval markets.
The business has since become an important part of Cohort’s Sensors and Effectors activities. Its position in Germany is particularly significant because Kiel is an established centre for naval engineering and maritime technology.
Open-Architecture Sonar Technology
One of ELAC SONAR’s distinguishing features is its emphasis on open architecture. The company has developed its KaleidoScope sonar processing platform and digital hydrophone technology to provide flexible solutions that can be adapted to different vessels and mission requirements.
Open architecture can be particularly valuable for defence customers because naval platforms often remain in service for decades. Equipment may need upgrades as sensors, software and processing technologies evolve.
For shipbuilders and system integrators, modular technology can therefore reduce the difficulty of introducing new capabilities without completely replacing an existing platform.
Growing Demand for Underwater Defence Technology
The latest agreement arrives at a time when underwater security has become an increasingly important issue for European governments and defence organisations.
Submarine warfare, undersea infrastructure protection and maritime surveillance are receiving greater attention as governments assess risks to shipping routes, communication cables and energy infrastructure.
ELAC has also been developing technologies aimed at emerging underwater-security requirements. Its capabilities extend beyond traditional submarine sonar into areas such as underwater communications and monitoring systems.
This diversification could provide additional opportunities for Cohort as governments and defence contractors seek improved awareness of activity beneath the sea.
European Naval Spending Supports the Market
European defence spending has increased substantially in recent years, creating opportunities for companies involved in specialist defence electronics and sensors. Naval modernisation is one part of that broader investment cycle.
New frigates, submarines and autonomous underwater platforms require sophisticated sensor suites. Sonar remains one of the most important technologies for operating effectively in environments where conventional radar and optical systems cannot provide the same level of visibility.
For specialist suppliers such as ELAC, participation in major programmes can create long-term revenue opportunities through equipment supply, integration, testing, maintenance, upgrades and support.
Previous ELAC Contract Wins Show Its Track Record
The Saab agreement builds on a history of significant contract wins for ELAC SONAR.
In 2021, ELAC received an order valued at more than €49 million from Leonardo for sonar systems for two U212 Near Future Submarines being supplied to the Italian Navy. The programme was managed within the framework of the Organisation for Joint Armament Co-operation, or OCCAR.
The contract was subsequently expanded. In January 2025, Cohort announced a €16.4 million contract amendment following activation of an option. The amendment increased the overall contract value to more than €100 million and covered sonar systems for four submarines.
These wins demonstrate ELAC’s ability to secure repeat business from major European defence programmes. They also show how an initial sonar contract can potentially develop into a larger long-term relationship as additional vessels are ordered.
What the Saab Deal Could Mean for Cohort
For Cohort shareholders, the most important consideration is likely to be the potential contribution of the agreement to future revenue visibility.
Large defence contracts are generally delivered over extended periods, meaning the headline value does not necessarily translate into immediate revenue or profit. However, sizeable programme wins can improve order-book visibility and support investment planning.
They can also provide credibility when approaching other international customers. Successful delivery of complex sonar systems for a major European defence contractor can strengthen a supplier’s credentials when competing for future submarine and surface-ship programmes.
Potential Benefits Beyond the Initial Contract
The strategic value of the Saab relationship could extend beyond the reported €140.7 million agreement. Defence programmes frequently involve long development, integration, testing and support cycles.
If ELAC successfully delivers its responsibilities, the relationship could potentially lead to further opportunities involving additional platforms, upgrades or related underwater systems.
However, investors should distinguish between the headline contract value and the financial impact recognised by Cohort. Revenue recognition depends on the contractual structure, delivery schedule, milestones and accounting treatment.
Technology Is Becoming More Important Underwater
The underwater environment presents unique challenges for defence operators. Radio-frequency signals behave differently underwater, visibility is often limited, and acoustic information can be affected by depth, temperature, salinity and background noise.
Advanced sonar systems therefore need sophisticated sensors and signal-processing capabilities to turn acoustic information into useful operational data.
ELAC’s focus on digital processing, hydrophones and integrated sonar systems positions the business within this specialist technology segment. Its experience across submarine and surface-ship applications provides a platform for further expansion as naval forces modernise their fleets.
Investor Outlook
The €140.7 million Saab agreement is potentially significant for Cohort because it reinforces the growth prospects of ELAC SONAR at a time when European defence procurement is expanding.
The key factors for investors to watch will include contract execution, the timing of revenue recognition, margins, cash generation and whether the agreement leads to additional orders.
ELAC’s established presence in European naval markets and its previous contract wins provide a strong foundation. Its technology portfolio also gives Cohort exposure to a specialist segment where high technical barriers and long customer relationships can support sustainable business opportunities.
At the same time, investors should remember that defence contracts can involve long delivery schedules, complex qualification processes and programme-specific risks. The headline value should therefore be viewed as an indication of potential business opportunity rather than an immediate measure of earnings.
Conclusion
Cohort’s ELAC SONAR unit securing a reported €140.7 million sonar agreement with Saab represents an important development for the group and highlights the strategic importance of underwater defence technology.
ELAC brings decades of hydro-acoustic expertise, a broad sonar portfolio and established relationships across the naval sector. Its previous work on major submarine programmes, including Italy’s U212 NFS programme, demonstrates its ability to participate in demanding European defence projects.
With naval modernisation accelerating and underwater surveillance becoming increasingly important, the latest Saab relationship could strengthen ELAC’s growth prospects and improve Cohort’s long-term order-book visibility.
For investors, the focus now shifts from the headline contract value to execution, revenue timing, profitability and the potential for follow-on opportunities. If ELAC can successfully convert this major agreement into sustained programme activity, the deal could become an important contributor to Cohort’s broader defence technology growth story.
Frequently Asked Questions
What is ELAC SONAR?
ELAC SONAR is a German-based naval technology company owned by Cohort plc. It specialises in sonar systems, hydro-acoustic sensors, underwater communications and related maritime technologies.
How much is the reported Saab sonar deal worth?
The reported value of the agreement is €140.7 million. The precise financial contribution to Cohort will depend on contract terms, delivery schedules and revenue-recognition milestones.
Why is sonar important to naval forces?
Sonar enables naval platforms to detect, analyse and track acoustic signals and objects underwater. It is used in applications including submarine detection, anti-submarine warfare, surveillance, mine avoidance and underwater navigation.
When did ELAC join Cohort?
Cohort completed its acquisition of Wärtsilä ELAC Nautik GmbH in December 2020. The business was subsequently renamed ELAC SONAR and became one of Cohort’s standalone subsidiaries.
Has ELAC won other major sonar contracts?
Yes. ELAC has secured several significant contracts, including a more than €49 million order from Leonardo in 2021 for sonar systems for Italy’s U212 NFS submarines. A later €16.4 million amendment increased that programme’s total value to more than €100 million.
What should Cohort investors watch next?
Investors should monitor contract execution, revenue recognition, margins, cash flow, order-book development and potential follow-on orders connected with Saab and other naval programmes.
