Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
BAE Systems said it expected sales to top £30bn in the coming year and reported a record order backlog as the defence company benefited from countries increasing military spending amid heightened geopolitical tensions.
The FTSE 100 group’s 2024 results came in at the top end of market expectations, with underlying earnings rising 14 per cent to just over £3bn. Revenues were up 14 per cent to £28.3bn. Free cash flow for the year was £2.5bn.
BAE said it won orders worth £33.7bn during the year, taking its backlog to a record £77.8bn amid strong demand from government customers.
Orders were driven by contract wins for warships in Australia, its Swedish-made CV90 fighting vehicles and new munitions. BAE also benefited from new orders for the pan-European Eurofighter Typhoon aircraft from Spain and Italy.
The company said it remained confident in the positive momentum of its business. It expects sales for the coming year to increase by between 7 and 9 per cent and underlying earnings to rise by between 8 and 10 per cent.
BAE’s shares have more than doubled since Russia’s full-scale invasion of Ukraine in February 2022, driven by the prospect of higher defence spending.
