GCIBAE Systems lifts full-year guidance as H1 earnings rise
[Florence Piot - stock.adobe.com]
Defence and aerospace firm lifted its full-year guidance on Thursday as it posted a jump in underlying sales and earnings for the first half.
In the six months to 30 June, underlying earnings before interest and tax rose 13% to £1.4bn, while sales were 13% higher at £13.4bn.
However, order intake fell to £15.1bn from £21.1bn in the same period a year earlier.
Chief executive Charles Woodburn said the company delivered a "strong" operational and financial performance in the first half, giving it confidence to increase year-end guidance across all key metrics.
"Our order intake shows that demand for our products and services remains high and we are well positioned for sustained growth in the coming years," he said.
"We will keep investing in new technologies, facilities and our people so that we can deliver on our record order backlog and help our government customers stay ahead in an uncertain world."
For 2024, BAE now expects sales to rise by between 12% and 14% on the previous year, up from previous guidance of 10% to 12%. Meanwhile, underlying EBIT is also expected to increase by 12% to 14%, up from a previous forecast of 11% to 13%.
Underlying earnings per share will grow 7% to 9%, up from previous guidance of 6% to 8% and the company now expects free cash flow of more than £1.5bn, up from a previous target of more than £1.3bn.
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