BAE Systems H1 Earnings, Revenue Rise; Lifts Annual Guidance

BAE Systems Plc (BA.L), a British arms, security, and aerospace firm, on Wednesday posted a rise in earnings and revenue for the first-half of 2023, amidst record order backlog and continued good operational performance. In addition, the company has raised its full-year 2023 outlook.

For the six-month period to June 30, the UK-based firm registered a pre-tax income of 1.198 billion pounds, a jump from 779 million pounds, recorded for the same period of 2022.

Post-tax profit stood at 1.005 billion pounds or 31.4 pence per share, compared with last year’s 647 million pounds or 19.4 pence per share.

Operating earnings were at 1.233 billion pounds as against 1.028 billion pounds of 2022.

Underlying EBIT improved to 1.258 billion pounds from 1.112 billion pounds a year ago.

Underlying earnings per share were at 29.6 pence, versus last year’s 24.5 pence per share.

Net finance costs plunged to 35 million pounds from 249 million pounds of previous year.

Order book was at 55.3 billion pounds, versus previous year’s 42.5 billion pounds.

Order intake rose to 21.1 billion pounds from 18 billion pounds a year ago.

Order backlog stood at 66.2 billion pounds as against previous year’s 52.7 billion pounds.

The company’s revenue improved to 10.997 billion pounds from 9.739 billion pounds a year ago.

For the first-half, the Board has declared an interim dividend of 11.5 pence per share, to be paid on November 30 to the shareholders registered on October 20. The dividend represents an increase of 11 percent compared with the interim dividend paid for the first-half of2022.

Looking ahead, for full year 2023, BAE Systems now expects its sales growth to be in the range of 5 percent to 7 percent as against its previous outlook for 3 percent to 5 percent.

Underlying earnings per share now projected to grow by 10 percent to 12 percent as against previous expectation of 5 percent to 7 percent.

The company now expects its underlying EBIT to rise by 6 percent to 8 percent, higher than its previous outlook for 4 percent to 6 percent growth.

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