BAE Systems has reported record order backlog growth of 11% to £77.8bn ($98.06bn) in 2024 with 14% growth in sales and underlying earnings before interest and tax (EBIT).
The company recorded a strong order intake of £33.7bn, which, when combined with a £3bn backlog in Space & Mission Systems, pushed the order backlog.
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Sales stood at £28.33bn ($35.69) for the full year of 2024, compared with the previous year’s £25.28bn. underlying EBIT was £3.015bn, compared to £2.682bn in 2023.
Profit before tax for BAE Systems in 2024 was £2.61bn, an increase from £2.47bn in 2023.
The underlying earnings per share (EPS) also saw an uptick, rising to 68.5p in 2024 from 63.2p in the previous year. This is said to have been partially offset by the rise in underlying net finance costs due to the £3.8bn debt raised during the year.
All sectors experienced growth during the year, with Air sector seeing a 7% increase in sales to £8.5bn, up from £8.1bn in 2023. The growth was bolstered by activities in MBDA and acquisitions such as FalconWorks, which have enhanced capabilities in uncrewed aerial systems (UAS).
Maritime sales totalled £6.2bn, reflecting a 12% increase on a constant currency basis. A significant part of this growth came from the expansion of the Hunter Class frigate programme in Australia.
The UK submarines division also contributed to the growth through design work on the SSN-AUKUS project.
Additionally, there was an increase in demand for munitions compared to 2023.
The Platforms & Services sector achieved sales of £4.4bn, representing growth of 15% on a constant currency basis.
The US combat vehicles division experienced growth due to the demand for Armoured Multi-Purpose Vehicles (AMPV) and Bradley vehicles.
Meanwhile, both Hägglunds and Bofors saw growth driven by European demand for the CV90 and Archer systems.Top of Form
BAE Systems CEO Charles Woodburn said: “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.
“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.”
Looking forward to 2025, the company expects its sales to increase by 7% to 9%, and underlying EBIT and EPS to increase by 8% to 10%.
The financial results come after the announcement of a new joint venture for the Global Combat Air Programme, established by BAE Systems, Italy’s Leonardo, and Japan Aircraft Industrial Enhancement Co..
