BAE Systems said it had secured £33.7 billion of orders in 2024, taking its backlog to a record, reflecting strong demand for combat vehicles and advancements in fighter jet, submarine and frigate programmes.
Britain’s biggest defence company said an increase in government military spending meant it was confident for the year ahead after it met forecasts with a 14% rise in both 2024 operating profit and revenue.
Chief executive Charles Woodburn said the company had an “exceptional visibility” of its record order backlog, which now stands at £77.8 billion, underpinning its confidence for the future.
“Today, nations are facing increasingly varied and complex threats to security,” the company said.
“These growing threats have reinforced the essential nature of our work and highlighted the need for continued global investment in defence,” it added.
The group, which has benefited from increased defence budgets in the wake of the Ukraine war, said it expected its earnings to rise 8%-10% this year on sales up as much as 9%.
Shares in BAE Systems, which have risen 7% in the last 12 months, reached 1,369 pence yesterday, the highest level since November.
Defence companies have been boosted by the USs demanding that European NATO members increase spending, triggering what Mediobanco Securities said was the start of a “multi-year super-cycle” as countries restock their arsenals.
