BAE Systems PLC (LSE:BA.), Britain's biggest defence company, forecast more growth next year as a strong order book and an “elevated threat environment” continued to support defence spending in a number of its key markets.
The FTSE-100 listed group reaffirmed guidance for the full year on a constant currency basis for growth in sales of between 2% to 4% and EPS of between 4% to 6%.
But it estimated that on an actual currency basis this would increase to 7% to 9% for sales and 11% to 13% for EPS, reflecting the strength of the dollar.
In a trading statement, BAE said order intake remained strong with a further £10bn secured since the end of the first half including the confirmation of a long-planned order for type 26 anti-submarine warships worth £4.2bn.
“We are tracking towards a very strong year of order intake. With £18bn secured in the first half we have secured a further £10bn since the half year.”
Chief executive Charles Woodburn commented: “Looking forward, our large order backlog, diverse portfolio position and focus on programme performance position us well for another year of top line growth and margin expansion in 2023.”
"We see sales growth coming from all sectors and opportunities to further enhance the medium-term outlook as our customers address the elevated threat environment."
Shares in BAE rose 1.7% in early trading to 738.20p.