BAE Systems raises guidance after surge in sales in first half

By Cristina Gallardo

BAE Systems raised its 2024 guidance after posting a surge in sales amid high defense spending across all its key markets.

The U.K. defense and aerospace prime (UK:BA) said Thursday that sales jumped 13% to 13.40 billion pounds ($17.23 billion) in the first half of the year.

Orders declined to GBP15.1 billion from GBP21.1 billion, resulting in a backlog of GBP74.1 billion. Order consensus as provided by Visible Alpha was GBP16.69 billion.

Chief Executive Charles Woodburn said the group's order intake shows that demand for BAE's products and services remains high and the company is well positioned for sustained growth in the coming years.

Net profit for the first half declined to GBP948 million from GBP965 million in the comparable period of last year, while underlying earnings before interest and taxes-the group's preferred measure of profitability-reached GBP1.39 billion compared with GBP1.26 billion.

Net profit consensus was GBP881.8 million, while underlying EBIT forecast was GBP1.365 billion as provided by Visible Alpha and the company respectively.

BAE raised its guidance for 2024. It said it now expects sales to grow between 12% and 14%, after previously guiding for an increase of 10% to 12%. EBIT growth is expected to grow between 12% and 14%, compared with a previous forecast for growth of 11% to 13%.

The board declared a dividend of 12.4 pence, up from 11.5 pence.

Write to Cristina Gallardo at cristina.gallardo@wsj.com

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08-01-24 0256ET

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