BAE Systems PLC (LSE:BA.) has said its order book hit a record last year days after speculation of hiked security spending in Europe sent the defence firm’s shares rallying.
Some £33.7 billion worth of new business was in the pipeline on December 31, the group said on Wednesday, leaving its backlog at a record £77.8 billion.
Sales climbed by 14% to £28.3 billion in the meantime, aiding a 14% jump in underlying pre-tax earnings to £3.0 billion.
BAE has benefitted from growing demand on the back of heightened geopolitical tensions with the likes of the Ukraine war in recent years.
Earlier this week, shares surged as crisis talks among European leaders in response to US efforts to end the war prompted speculation of hiked defence spending on the continent.
BAE signalled ongoing strong demand across the board, including for the likes of its munitions, electronic systems, and intelligence products as well as within emerging areas.
“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,” chief executive Charles Woodburn noted.
A 20.6p per share final dividend was recommended, taking the figure to 33p for 2024 and up 10% on a year earlier.