Defense giant Saab sees orders triple after Gripen fighter jet deal with Ukraine

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.

Stockholm-listed shares rose about 2% shortly after market open, amid a mixed defense sector. The Stoxx 600 index was down 0.4%.

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 with the Swedish Defence Materiel Administration 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.