BAE Systems PLC (LSE:BA.) has lifted guidance and hailed a strong start to the year on the back of continued high demand for weapons.
Sales are now expected to grow by 12% to 14% this year, the FTSE 100-listed defence firm said in interim results on Thursday, against 10% to 12% previously.
Earnings guidance was also bumped up by 100 basis points to between 12% and 14% as a result.
Chief executive Charles Woodburn said this came after BAE “delivered a strong operational and financial performance in the first half”.
He added: “Our order intake shows that demand for our products and services remains high and we are well positioned for sustained growth in the coming years.”
Sales over the six months to June climbed 13% to £13.4 billion, as underlying pre-tax earnings also came in 13% higher at £1.4 billion.
Woodburn added momentum had been maintained on the company’s key programmes, including plans to supply nuclear submarines to Australia under the AUKUS agreement with the UK and US, alongside a future next-generation combat jet, known as Tempest.
As of June, BAE's order book sat at £59.6 billion, compared to £58.0 billion the year before.
A dividend of 12.4p per share was paid out to shareholders over the first half, up 8% on a year earlier, BAE added.
Shares gained 0.5% in early trading.