Saab reported sales of 19.8 billion kronor ($2.0 billion) in the second quarter, up from 15.2 billion kronor a year earlier.

It was better than the 18.1 billion kronor analysts were expecting, according to surveys by Factset and Bloomberg.

Net income for the second quarter came in at 1.5 billion kronor, up from 1.0 billion kronor for the same period a year earlier, and beating the 1.3 billion kronor 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 increase defence spending to five percent 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".

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SAAB AB