BAE Systems (BA) Trading Update summary

Operational and financial performance

• Full-year guidance reaffirmed, with performance in line with the upgraded outlook from the half year.

• Order intake remains strong, with approximately £25bn booked year-to-date, reflecting robust customer confidence.

• Integration of Space & Mission Systems (SMS) is on track, with sales accelerating and margins accretive to the group.

• Order backlog and pipeline provide strong visibility and support long-term growth.

Guidance and financial outlook

• 2024 sales expected to grow 12-14% over 2023 (£25,284m), with underlying EBIT also up 12-14%.

• Underlying EPS forecasted to rise 7-9% (2023: 63.2p), and free cash flow to exceed £1.5bn.

• Guidance is based on constant currency ($1.24:£1), with sensitivity to exchange rate movements.

Major contract awards and order flow

• Secured significant contracts, including $493m for M109 Howitzers, $184m for Armored Multi-Purpose Vehicles, and $440m+ for Bradley Fighting Vehicles.

• Won a $460m aviation radio contract, $178m for USS Halsey modernisation, and $270m for guided weapon components in Australia.

• MBDA joint venture contributed around €2.5bn in order intake.