The Heinkel He 2 represented an improvement on the He 1 and underwent considerable testing before it was licence-built in Sweden as the Svenska S.2 for the Swedish Navy and for export to Finland and possibly other countries. A two-seater, it was normally powered by a 268kW Rolls-Royce Eagle IX engine, although a 223kW Hispano-Suiza, 298kW Liberty or similar engine could be fitted. Maximum level speed was 185km/h.