BAE Systems PLC reaffirmed its upgraded full-year guidance on Tuesday, highlighting strong order intake and visibility as it moves through the second half of the year.
BAE backs upgraded full-year guidance
The London-based defense contractor reported a robust order book, with £25 billion in orders secured year-to-date, reflecting confidence in its ability to deliver.
Noteworthy contracts secured in the second half include a $493 million deal for continued production of M109 self-propelled Howitzers and M992A3 Ammunition Carriers. Additionally, BAE saw an order intake of approximately €2.5 billion from its joint venture with European missile maker MBDA.
BAE confirmed its upgraded guidance for the full year, first announced during its interim results in August, across all key financial metrics. Sales and underlying EBIT are both expected to grow by 12%-14% compared to £25.28 billion and £2.68 billion, respectively, in the previous year.
Underlying earnings per share are forecast to rise between 7% and 9% from 63.2 pence, while free cash flow is projected to exceed £1.5 billion for 2024.
The company highlighted the strong performance of its Maritime & Platforms & Services division, which continues to be a key driver of growth compared to other business segments.
BAE sees other opportunities in all sectors
With defense spending remaining strong in its core markets, BAE sees a robust pipeline of opportunities across all sectors, especially in the US, where medium-term growth prospects are expected to continue.
In the UK, BAE is actively engaged with the government as part of its ongoing strategic defense review, with a commitment to increasing defense spending to 2.5% of GDP.
The company also emphasized its growth outlook, noting an increase of approximately 7,500 employees in its global workforce by the end of October.
BAE's share buyback program, initiated in July, is progressing well, and the firm expects to return around £1.4 billion to shareholders by the end of the year.
BAE CEO Charles Woodburn stated, "Our operational and financial performance so far in 2024 reaffirms our confidence in achieving the upgraded full-year guidance. By focusing on operational excellence, disciplined contracting, and growing our workforce, we are consistently delivering critical capabilities and technologies to our customers worldwide. At the same time, we continue to invest in our long-term growth, which, along with our diverse geographic and domain presence, positions us well for continued success in the years ahead."
