Saab reported sales of SEK19.8 billion (US$2 billion) in Q2, up from SEK15.2 billion a year earlier.

It was better than the SEK18.1 billion that analysts were expecting, according to surveys by Factset and Bloomberg.

Net income for Q2 came in at SEK1.5 billion, up from SEK1 billion for the same period a year earlier, and beating the SEK1.3 billion that analysts were expecting.

“We are navigating in a world where geopolitical tensions have escalated, mainly driven by the conflicts in the Middle East and the ongoing war in Ukraine,” Saab CEO Micael Johansson said.

Johansson also noted that following the Nato summit in June, members of the military alliance had committed to increasing defence spending to 5% of GDP by 2035.

“While this will enable significant growth for our industry, the shift from defence planning and policy alignment to procurement takes time,” Johansson said.

He added that the company was “continuing to invest in capacity increases and… proactively working in close cooperation with our suppliers to secure future deliveries”.