BAE Systems PLC

Latest Results (17.12.2024):

Operational Performance

BAE Systems PLC's operational and financial performance for the year 2024 has been strong, reaffirming the company's confidence in achieving its upgraded full-year guidance. The focus on operational excellence and contracting discipline has enabled the company to deliver critical capabilities and technologies to customers worldwide. This performance is supported by a solid order intake, with around £25 billion booked year-to-date, reflecting government customers' confidence in BAE Systems' ability to deliver important capabilities.

Financial Guidance

The financial guidance for the full year 2024 remains unchanged from the upgraded guidance provided at the half-year results in August. BAE Systems PLC expects sales to increase by 12-14% compared to 2023, with underlying EBIT also projected to grow by 12-14%. The underlying earnings per share (EPS) is anticipated to rise by 7-9%, and the free cash flow (FCF) is expected to exceed £1.5 billion. This guidance is provided on a constant currency basis, using an exchange rate of $1.24:£1.

Order Intake

BAE Systems PLC has secured around £25 billion in orders for the year to date, demonstrating strong order flow. Notable contract awards in the second half of the year include significant deals for M109 Self-Propelled Howitzers, Armored Multi-Purpose Vehicles, and Bradley Fighting Vehicles, among others. These contracts highlight the company's ability to secure substantial orders and maintain a robust order backlog, supporting its long-term growth outlook.

Integration of SMS Business

The integration of the Space & Mission Systems (SMS) business into BAE Systems' US operations is progressing well. The business is realizing cost synergies and meeting scheduled workforce integration milestones. SMS sales in the second half of the year are progressing as expected, delivering group-accretive margins. The order backlog and pipeline support the company's target of achieving 10% annual sales growth in the medium term.

Investment and Workforce Growth

BAE Systems PLC continues to invest in its business for long-term growth, with a focus on people, facilities, and technology. By the end of October 2024, the company's global workforce increased by approximately 7,500 employees, including new recruits and those joining through acquisitions. The company is also investing in new facilities, such as the Applied Shipbuilding Academy in Glasgow and a new advanced technology factory in Rochester, UK, to support its growth outlook and meet evolving customer needs.