BAE Systems Gains After Solid Year-to-Date Order Intake

On Tuesday, BAE Systems (LON: BA.) reported a robust year-to-date performance, with approximately £25 billion in orders secured thus far in 2024.

BAE Systems shares are up around 1.1% at the time of writing on Tuesday, trading at around 1,408.5p a share.

The company said its order intake has solidified its full-year guidance, which remains unchanged from the upgraded projections provided at the half-year results in August. For the full year, BAE expects sales growth from 12% to 14% and underlying EPS growth from around 7% to 9%.

Charles Woodburn, the company's Chief Executive, said he is confident in the company's ability to achieve its full-year guidance.

“Focusing on operational excellence, contracting discipline and growing our workforce is enabling us to consistently deliver critical capabilities and technologies for our customers worldwide,” said Woodburn. “At the same time, we continue to invest in our business for the long term, which together with our broad geographic and domain diversity, positions us well for continued growth in the years ahead.”

The company's strong year-to-date performance is seen as a result of by several key factors.

Firstly, the significant order intake of around £25 billion is said to reflect the trust and confidence of government customers in BAE Systems' ability to deliver vital capabilities.

Secondly, BAE says integration of the Space & Mission Systems (SMS) business is progressing as planned, with sales accelerating in the second half of the year and contributing to improved margins.

Lastly, the strong visibility in the order backlog and pipeline of incumbent positions is said to provide a solid foundation for the company's long-term growth prospects.

BAE added that its defence spending in its major markets remains supportive of its existing programmes, providing “a robust pipeline of opportunities across all our sectors.”

The company will announce its preliminary results for the year ending 31 December 2024 on 19 February 2025.