12th Nov 2024 10:09
(Alliance News) - BAE Systems PLC on Tuesday reaffirmed its upgraded full-year guidance, reporting strong visibility and order intake as it progresses through the second half of the year.
The London-based defence contractor revealed a strong order book, reporting GBP25 billion booked year-to-date with BAE stating this reflects confidence in its delivery capabilities.
Notable contracts won by the FTSE100-firm in the second half of the year include USD493 million to continue to production of M109 self-propelled Howitzers and M992A3 Ammunition Carriers, with BAE also seeing an order intake of approximately EUR2.5 billion from the firm's share of its joint venture with European missile manufacturer MBDA.
BAE said it was reaffirming its upgraded full-year guidance given at its interim results in August, across all metrics.
Sales and underlying earnings before interest and taxes are both expected to increase 12%-14% from GBP25.28 billion and GBP2.68 billion the prior year respectively
Underlying earnings per share is expected to grow between 7% and 9% from 63.2 pence with free cash flow guided above GBP1.5 billion for 2024.
The firm drew attention to the successful contribution of its Maritime & Platforms & Services division, with BAE noting it continues to account for a higher proportion of growth relative to other business segments.
Defence spending in its major markets has remained supportive, BAE said, presenting the firm with a robust pipeline of opportunities across all sectors, with it highlighting continued growth opportunities across the medium term in the US.
For the UK, BAE noted that it is actively engaged with the UK government as part of its ongoing strategic defence review as it remains committed to increasing defence spending to 2.5% of gross domestic product.
BAE said it remains committed to its growth outlook as its global workforce "increased by approximately 7,500 employees" by the end of October.
The firm added that its share buyback programme commenced in July is progressing well, with total cash returned to shareholders this year expected to be in the region of GBP1.4 billion.
BAE Chief Executive Charles Woodburn said: "Our operational and financial performance so far in 2024 reaffirms our confidence in achieving the upgraded full-year guidance we issued at the half-year. Focusing on operational excellence, contracting discipline and growing our workforce is enabling us to consistently deliver critical capabilities and technologies for our customers worldwide.
"At the same time, we continue to invest in our business for the long term, which together with our broad geographic and domain diversity, positions us well for continued growth in the years ahead."
BAE shares were up 0.8% at 1,404.60 pence on Tuesday morning in London.
By Christopher Ward, Alliance News reporter
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