Defence giant BAE Systems profits from continued global tensions
Amid heightened global tensions, annual sales, profits and dividends all rose at defence group, BAE Systems, although it saw a fall in its order levels, it revealed today.
The group, which employs around 1,800 staff in the South West, reported revenues of £28.3bn in 2024, a rise of 14%.
Pre-tax profits, on a statutory basis, were £2.332bn, up from £2.326bn the previous year.
The dividend has been increased from 30p per share to 33p per share.
Order intake for the year was £33.7bn, down from £37.7bn in 2023, but the group still boasts an order backlog of £77.8bn, an £8bn increase on the previous year.
Free cashflow dropped £88m to £2.505bn, due to higher capital expenditure and net finance costs.
During the year the group repurchased 43 million shares under its share buyback programmes, at a cost of £555m. Combined with dividends, the group returned £1.492bn to shareholders in the year ended December 31, 2024.
In March it raised £3.8bn of debt finance following the £4.4bn acquisition of Ball Aerospace, an American manufacturer of spacecraft, components and instruments for national defence, civil space and commercial space applications.
Charles Woodburn, Chief Executive, said: “The results we’re reporting today reflect the outstanding efforts of our employees and continue our track record of strong top line and earnings growth, free cash flow and orders.
“We’re supporting our customers around the world, while shaping our portfolio towards higher growth and strategically important markets.
“Across our business, we’re also investing in our people, facilities and technologies to drive efficiencies, boost capacity and increase our agility to deliver in a rapidly evolving environment.”
He added: “Based on the exceptional visibility of our record order backlog and sustainability of our value-compounding business model, we remain confident in the positive momentum of our business into the future.”
Guidance for the current financial year estimates a seven to nine per cent increase in revenues and an eight to 10% rise in earnings before interest and tax (EBIT).
