UK defence contractor BAE Systems has provided an update on its operational and financial performance for the year 2024, revealing a strong year-to-date order book.
The company has secured approximately £25bn ($32.07bn) in orders for the year so far, reflecting confidence in its ability to provide critical capabilities.
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Contract awards in the second half of the year include a $178m award for the USS Halsey modernisation, focusing on sustainment work for the Arleigh Burke-class guided-missile destroyer at the San Diego shipyard.
Additionally, BAE Systems has secured contracts for guided weapon components valued at A$270m to enhance production capabilities in Australia, among others.
Key milestones include the launch of the sixth Astute Class submarine, Agamemnon, from the submarine site in Barrow-in-Furness, Cumbria.
Furthermore, the second Type 26 frigate for the Royal Navy, HMS Cardiff, has entered the water for the first time in Glasgow.
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By GlobalDataIn the UK, the newly elected government has reiterated its commitment to strengthening the armed forces, aiming to increase defence spending to 2.5% of GDP.
BAE Systems is engaged with the government on its ongoing Strategic Defence Review, which is expected to provide recommendations on the nation’s future defence strategy in the first half of next year.
By the end of last month, BAE Systems’ global workforce increased by approximately 7,500 employees.
This includes 1,260 apprentices and 1,000 graduates and undergraduates recruited in the UK, alongside more than 5,000 employees who joined the group following the Ball Aerospace acquisition.
BAE Systems chief executive Charles Woodburn said: “Our operational and financial performance so far in 2024 reaffirms our confidence in achieving the upgraded full-year guidance we issued at the half year.
“Focusing on operational excellence, contracting discipline and growing our workforce is enabling us to consistently deliver critical capabilities and technologies for our customers worldwide. 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.”
For the full-year 2024, the company reiterated its guidance for the year. It anticipates sales growth to be between 12% and 14%, with underlying earnings before interest and tax also expected to fall within the same range.
Earlier this month, BAE Systems received a contract with the Dutch Materiel and IT Command to deliver eight Bofors 40Mk4 naval gun systems.
