BAE Systems: Riding the Wave of Increased Global Defence Spending

BAE Systems announced securing £33.7 billion in orders for 2024, reaching a record backlog due to high demand for military equipment. With a 14% rise in profit and revenue, the company is confident about future prospects. Increased global defence budgets bolster their earnings outlook for this year.

BAE Systems has announced securing £33.7 billion ($42.5 billion) in orders for 2024, elevating its backlog to a record level as demand surges for combat vehicles and advancements in military technology.

Britain's leading defence firm reported a 14% rise in both operating profit and revenue for 2024, attributed to increased government military expenditure. CEO Charles Woodburn expressed confidence about future prospects, highlighting the record order backlog of £77.8 billion.

The company cited growing global security threats, underscoring the necessity for sustained investment in defence. Following higher defence budgets, partly due to the Ukraine conflict, BAE Systems forecasts an 8%-10% earnings rise this year. The company's shares climbed to their highest point since November, as defence firms benefit from NATO's increased spending demands.

(With inputs from agencies.)