U.S. arms manufacturer Lockheed Martin Corp reported better-than-expected quarterly earnings on Tuesday, helped by higher sales in its aviation division, which makes the F-35 fighter jet, as the company sees demand for weapons increase after Russia’s invasion of Ukraine.

The creator of the High Mobility Artillery Rocket System (HIMARS) launchers and their ammunition, which Ukraine uses to repel the invasion of Russia, saw lower profit margins compared to the same quarter a year ago.

The company maintained its revenue forecast for 2022 of $ 65.25 billion, despite continued supply chain headwinds. In July, Lockheed downgraded the figure to $ 66 billion.

In an interview with Reuters, Chief Financial Officer Jay Malave said that next year, “despite the pressure on sales and margins, we believe we can still deliver the same absolute free cash flow as last year, about $ 6.1 billion.

That, combined with a new multi-year authorization plan to repurchase $14 billion worth of stock approved Monday, means Malave expects earnings per share to increase in 2023.

The Bethesda, Maryland-based company posted $6.71 in earnings per diluted share for the quarter, up from analysts ‘ estimates of $6.67, according to data from Refinitiv.

Yet the pandemic-related supply chain challenges remain, Malave said. Lockheed’s largest unit, aeronautics, which also makes the F-16 aircraft, was hit with problems obtaining key parts in the first half of the year, hampering production volume.

Compared to the same quarter a year ago, the turnover of Aeronautics, which makes the F-35, increased by 7.6% to $7.1 billion. The unit’s profit margins fell slightly from 10.9% to 10.7% compared to the same quarter last year.

The F-35 has had several recent successes in fighter competitions, including in Finland, Switzerland and Germany. Potential customers include Greece and the Czech Republic.

Sales of the Missiles and Fire Control Department, which makes HIMARS launchers, increased by 1.8% to $2.83 billion, but profit margins fell slightly compared to the same quarter a year ago.

Malave said Lockheed has not held talks on the Defense Production Act, an emergency measure the U.S. government can use to direct arms production, to speed up arms deliveries to Ukraine. And despite recent unrest between the US and Saudi Arabia over a reduction in oil production, Malave said Lockheed has not been asked to change supplies to the Kingdom of Saudi Arabia.

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