BAE Systems has upgraded its full-year profit and revenue forecasts following a strong first-half performance. The company attributes its positive outlook to increased global defence spending, a growing order book, and solid operational results.
Sales for the first half reached £14.6 billion, up from £13.4 billion in the same period last year. Pre-tax profits also saw a slight increase to £1.19 billion from £1.16 billion. During this period, BAE secured £13.2 billion in new orders, including several high-profile contracts.
Key highlights include the laying of the keel for HMS Dreadnought at the company’s Barrow-in-Furness shipyard, a major milestone in the construction of four Dreadnought-class submarines for the Royal Navy. BAE also received £1 billion in additional funding for the Global Combat Air Programme (GCAP), which is being developed in collaboration with international partners from Italy and Japan. This programme aims to deliver the next generation of combat aircraft.
Additionally, BAE has secured a $1.2 billion contract to provide the US Space Force with space-based missile tracking capabilities. The company is also preparing Royal Navy ships for the UK Carrier Strike Group 2025 and has made strides with the development of all-electric uncrewed air systems for the Navy’s Indo-Pacific deployment.
Looking ahead, BAE is revising its forecast for the full year, expecting sales to rise by 8% to 10% and underlying EBIT to increase by 9% to 11%. The company has also set its free cash flow target at over £1.1 billion. However, the share buyback programme will be reduced due to a stronger-than-expected share price.
With a solid pipeline of orders and a strong market position, BAE remains confident in its continued growth despite the challenges of a global threat environment.
