BAE Systems shares rose again on reports that Ukraine forcers repelling the latest Russian attacks are firing ammunition faster than can be produced in the West.
NATO secretary-general Jens Stoltenberg made the claim ahead of a meeting of defence chiefs this week to discuss how to help Ukraine further in the event of a fresh offensive by Russia.
Ukrainian troops are firing up to 10,000 artillery shells daily, which has used up NATO stockpiles, with levels of reserves likely to be raised, according to reports today.
Weekend stories suggested the UK government is to announce a £1bn rise in its defence budget to avoid real terms cuts, marking positive news for contractors and BAE, which supplies a major chunk of UK munitions.
BAE has been among the top three performers on the FTSE100 index in the past year, with its full-year results on 23 February set to reflect the strong momentum seen over the past 12 months.
Almost a year after Russia began its invasion of Ukraine, BAE Systems PLC (LSE:BA.)’s share price has risen 40% as defence spending and contracts have ramped up in response to the war.
BAE has secured a host of new orders on the back of the conflict, with its order book set to have grown 45% to around £31bn in 2022, according to Barclays analysts.
The FTSE100-listed defence firm is among several weapons manufacturers to have rallied in response to heightened tensions in Europe.
Lockheed Martin (NYSE:LMT) Corp and Northrop Grumman (NYSE:NOC) Corp have risen 22% and 12.7% respectively since 24 February, when the war started.
European defence spending hit US£392.7bn in 2021, while globally the figure surpassed US$2trn for the first time, according to the Stockholm International Peace Research Institute.
BAE shares were up 1.8% to 865p on Monday.