BAE Systems raised its sales, profitability and cash flow targets for the year after a strong first half as governments keep spending on defense amid escalating geopolitical tensions. The U.K. arms maker said it expected sales growth of 8% to 10% this year, above a prior forecast of 7% to 9%.

Last year, sales amounted to £30.66 billion, equivalent to $40.99 billion. The group makes combat vehicles, ammunition, missile launchers and artillery systems, including the M777 howitzer that Ukraine has employed widely in its fight against Russia. It also provides cybersecurity services, electronic warfare and night vision systems, surveillance and reconnaissance sensors.

Like many of its European rivals, BAE Systems has witnessed sustained demand following Russia's invasion of Ukraine that pushed governments in Europe to spend more on defense to replenish their stockpiles after diverting weapons to Kyiv.