BAE Systems (BA) H1 2024 earnings summary

Executive summary

• Upgraded full-year guidance across all key metrics after strong operational and financial delivery in H1 2024, with significant strategic progress including AUKUS, GCAP, and integration of Ball Aerospace (SMS).

• Record order backlog of £74.1bn, supported by £15.1bn order intake and contributions from all sectors and SMS acquisition.

• Continued investment in R&D, technology, and workforce to support long-term growth, especially in Electronic Systems and Maritime.

Financial highlights

• Sales up 13% year-over-year to £13.4bn; organic growth near 10%.

• Underlying EBIT increased 13% to £1,393m; underlying EPS up 7% to 31.4p; interim dividend up 8%.

• Free cash flow of £219m, down from £1,070m, reflecting lower customer advances; over £800m allocated to shareholder returns.

• Order backlog at a record £74.1bn, supporting sustainable and visible medium-term sales growth.

Outlook and guidance

• Upgraded 2024 guidance: sales and underlying EBIT expected to grow 12–14%, underlying EPS up 7–9%, and free cash flow above £1.5bn.

• Guidance incorporates SMS acquisition and Air Astana shareholding reduction.

• Continued deleveraging expected, with net debt to EBITDA ratio projected below 1.7 by year-end.