BAE Systems said its good operational performance plus the demand from its customers, the biggest of which are the United States, Britain, Saudi Arabia and Australia, meant its full-year results would be better than expected across the board.

Shares in BAE Systems jumped 5% in early deals. The stock has risen 19% over the last 12 months.

Since Russia invaded Ukraine last year, demand for weapons, ammunition and equipment has soared as western allies support Ukraine and shore up their own stocks, while in the Asia-Pacific region, growing threats are also driving defence spending.

For 2023, BAE said earnings per share would grow 10%-12%, compared to the 5%-7% increase it had forecast in February, while it also lifted sales guidance to 5%-7% growth from 3%-5%.

“Our global footprint, deep customer relationships and leading technologies enable us to effectively support the national security requirements and multi-domain ambitions of our government customers,” BAE Chief Executive Charles Woodburn said in a statement on Wednesday.

BAE Systems makes submarines, fighter jets, ships, combat vehicles and other kit, and Woodburn said the company was well-positioned to deliver “sustained growth in the coming years”, with a record order backlog of £66.2 billion (US$84.5 billion).

“With some of its biggest buyers, the UK, US and Europe, all expected to continue raising defence budgets over the coming years, the sky really is the limit,” said Hargreaves Lansdown analyst Aarin Chiekrie.

For the first six months of the year, BAE’s underlying earnings per share rose 17% to 29.6 pence, and it lifted its interim dividend by 11% to 11.5 pence per share. The company also approved a further share buyback of up to 1.5 billion pounds to roll-on after completion of an existing programme.

During the period, BAE won a new order from the Czech Republic for 246 infantry fighting vehicles and its MBDA unit was contracted by Poland to supply launchers and missiles. Its projects to build new Dreadnought submarines for Britain and supply Qatar with Typhoon jets also continued.