Swedish defense giant Saab reported better-than-expected third-quarter earnings and revenue on Friday, as new orders more than tripled from a year earlier, boosted by a deal to supply Gripen fighter jets to Ukraine.
New orders came in at 65.8 billion Swedish kronor ($6.6 billion), up from 20.9 billion kronor a year earlier, beating FactSet expectations of 56.4 billion kronor.
Third-quarter sales reached 20.6 billion kronor, ahead of FactSet expectations of 20 billion kronor. Earnings before interest and taxes (EBIT) came in at 1.95 billion kronor, also beating forecasts of 1.9 billion kronor.
The results come as European governments race to turn defense spending pledges into military capability.
Saab's order intake included a 24.6 billion kronor contract for 16 Gripen E fighter jets for Ukraine, signed in June and booked in the third quarter. Deliveries are scheduled for 2029-2030.
"The growing customer demand is reflected in major contract awards, including Gripen for Ukraine, GlobalEye and an order related to Germany's new frigates," CEO Micael Johansson said in a statement.
Orders booked in the quarter also include a 10.1 billion kronor order for its military surveillance aircraft GlobalEye to an undisclosed customer in the Middle East, and an 8.7 billion kronor order for systems for German frigates.
European defense stocks over the past 12 months.
Saab, whose products range from Gripen fighter jets and submarines to missiles and advanced electronics, has seen exponential order growth since Russia's full-scale invasion of Ukraine in early 2022.
Even with an ever-growing order book, booming sales, and increasing profitability, Saab stock, like many of its peers, has taken a hit in recent months as some investors question whether valuations have run ahead of the industry's ability to deliver.