Saab backed its medium-term growth guidance after signing several large orders, noting demand for military equipment continues to grow as governments upgrade capabilities and replenish arsenals amid volatile global security.

"Demand for defense and deterrence capabilities remained strong during the quarter, as customers continued to invest in both immediate readiness and long-term capabilities," CEO Micael Johansson said. Saab booked its largest ever export deal in Q2, a 47 billion kronor ($4.87 billion) contract to deliver three submarines to Poland.

Since quarter-end, it signed a 24.6 billion kronor deal for 16 Gripen fighter jets to Ukraine, was selected by NATO for up to 10 Global Eye surveillance aircraft, and won an 8.7 billion kronor order for German frigates.