Sweden's Saab posts record orders as fighter jet maker cashes in on higher defense spending

Swedish defense company Saab beat earnings expectations in the second quarter, as booming demand for military equipment propelled the fighter jet maker to another quarter of record orders backlog.

New order bookings in the quarter ended June were 68.4 billion Swedish crowns ($7.1 billion), above the FactSet estimates of 57.1 billion Swedish crowns, which included a Polish submarine deal worth 47 billion crowns.

The total backlog amounted to 317.7 billion crowns, up from 197.6 billion a year ago and marking a fifth consecutive quarter of order book growth.

It comes as European governments ramp up defense spending, driving up book orders with the region's companies. 

"We operate in a market with structurally growing demand and remain focused on scaling capacity, delivering to customers, and advancing new capabilities," said Saab CEO Micael Johansson in a statement. 

Sales came in at 25.5 billion crowns, beating FactSet estimates of 23.9 billion crowns, while operating profit (EBIT) was 2.8 billion crowns, compared to expectations of 2.4 billion crowns.

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