BAE Systems maintained its guidance for annual earnings to rise as much as 12% as orders for military kit continued to flow at a time of heightened geopolitical risk, benefiting Britain’s biggest defence company.
BAE upgraded its forecast in August, guiding that earnings per share would grow by 10%-12% in 2023 after orders soared following Russia’s invasion of Ukraine last year.
Since then, Israel has invaded Gaza in the wake of Hamas’ Oct. 7 attack, upsetting stability in the Middle East.
BAE said on Friday it had booked 10 billion pounds ($12.2 billion) of orders since the end of June, including 3.9 billion of funding for the next phase of the AUKUS submarine programme between Australia, Britain and the United States.
“Order flow on new and existing programmes, renewals on incumbent positions and progress with our opportunity pipeline remains strong,” chief executive Charles Woodburn said in a statement.
The group, whose biggest customers are the United States, Britain, Saudi Arabia and Australia, said it had increasing exposure to “structurally growing” defence markets.
Weapons, ammunition and equipment have been in strong demand as western allies provide support to Ukraine and at the same time replenish their own stocks, with growing threats from China and instability in the Middle East also driving orders.
(Reporting by Sarah Young; Editing by Kate Holton and Paul Sandle)