BAE Systems PLC (LSE:BA.) has doubled down on previously upgraded full-year guidance as demand for defence goods globally remains supportive.
Sales growth of 12% to 14% continued to be expected since a hike at the half-year stage, alongside a 12% to 14% uptick in underlying pre-tax earnings, BAE said on Tuesday.
This reflected trading on a constant currency basis, BAE added, flagging a five-cent movement in the dollar against the pound to an average of US$1.29 so far in 2024.
“As a guide,” such movement would impact sales by around £500 million and underlying earnings by roughly £70 million, BAE said.
“Our operational and financial performance so far in 2024 reaffirms our confidence in achieving the upgraded full-year guidance,” chief executive Charles Woodburn commented.
Defence spending across major markets was said to have remained supportive, with BAE highlighting commitments to strengthen the armed forces by the UK’s new government and “bipartisan” support for security in the US.
Higher defence spending was also expected across key markets in the likes of Europe, the Middle East and Asia Pacific.
Around £25 billion worth of orders had been secured so far in 2024, with shareholder returns set to sit around £1.4 billion for the whole year.
This would include BAE’s 12.4p interim dividend as progress was also made of a buyback of up to £1.5 billion announced in August.