BAE Systems earnings rise, upbeat on outlook

Defence company BAE Systems reported a rise in full-year earnings on Thursday as it struck an upbeat note on the outlook.

Underlying earnings before interest and tax for 2021 increased 13% to $2.2bn, with revenue up 5% at $21.3bn.

Order intake rose to £21.5bn from £20.9bn in 2020, while the order backlog fell by £1.2bn to £44bn.

Chief executive Charles Woodburn said: "We are continuing to evolve our business, increasing our investments in advanced technologies to deliver differentiated solutions to meet our customers' priorities.

"Our diverse portfolio, together with our focus on programme execution, cash generation and efficiencies, is helping us to navigate the challenging operating environment, meaning we are well positioned for sustained top line and margin growth in the coming years."

For the year to the end of December 2022, group sales are expected to grow between 2% and 4% over 2021. BAE said it expects growth in the Electronic Systems, Air, Maritime and Cyber & Intelligence segments, whilst Platforms & Services (US) is expected to be stable.

Underlying EBIT is expected to rise by around 4% to 6%.

"We have a large order backlog and exceptional programme positions, providing visibility of growth which was further supported by order flow in 2021 that exceeded targets," the company said.

"Our defence and security capabilities remain highly relevant in an uncertain global environment with complex threats, the requirement in many cases to recapitalise or upgrade ageing equipment, and with the additional need for governments to drive a domestic economic prosperity agenda in a post-pandemic world. This backdrop has resulted in good prospects in existing and new international markets for our products and services in air, maritime, land, space and cyber security."