BAE Systems’ Share Price Rose 1.34% on Upbeat FY ’23 Guidance

The BAE Systems plc (LON: BA) share price rose 1.34% after its year-to-date earnings results were released. The company revealed that it had maintained a robust order intake, which stood at approximately £10 billion since its half year.

The British multinational arms, security and aerospace company reiterated its full-year guidance aligned with its half-year upgrade. The company also confirmed good operational performance and effective supply chain management throughout the year. The firm also has an ongoing share buyback program. 

The company’s full-year 2023 guidance expects its sales to grow by 5% to 7% (compared to 2022 sales of £23,256 million). The Underlying EBIT is anticipated to increase by 6% to 8% (versus 2022 figures of £2,479 million). Underlying EPS is predicted to rise by 10% to 12% (compared to 2022's 55.5p).

Free Cash Flow (FCF) is expected to be greater than £1.8 billion (compared to 2022’s FCF of £1,950 million). BAE reports a robust year for order intake, with over £30 billion in bookings year-to-date. 

Some notable contract awards during the year include £3.9 billion in funding for the next phase of the SSN-AUKUS submarine program. $797 million was allocated to commence AMPV full-rate production, including previous funding for early-order materials. 

BAE highlights its competitive edge from a global presence and diversified product portfolio. The robust order flow reflects customer confidence in BAE’s ability to deliver vital capabilities amidst escalating geopolitical risks. 

BAE plans to provide an Environmental, Social, and Governance (ESG) update and progress report on January 25, 2024. The regulatory process for the Ball Aerospace acquisition is proceeding smoothly, with a target completion date set for the first half of 2024.

Charles Woodburn, BAE Systems Chief Executive, said: “Trading has been in line with the upgraded guidance we issued at the time of our 2023 half-year results. We are delivering another year of good sales and earnings growth, together with strong cash flow generation. Order flow on new and existing programmes, renewals on incumbent positions and progress with our opportunity pipeline remains strong. These underpin our confidence and visibility for good top-line growth in the coming years, and we continue to reinforce our value-compounding model with a sharp focus on operational performance and disciplined capital allocation.”

BAE share price. 

The BAE share price rose 1.34% to trade at 1115.75p from Friday’s closing price of 1101.0p.