British aerospace and defence giant, BAE Systems, has announced its full year financials for 2024, reporting a 14% increase in revenue and record profits for the period.
For the first time, BAE Systems made an annual profit of more than £3bn (before tax and interest) in 2024, with strong performance reported across all of its divisions. Mergers and acquisitions, such as the purchase of Ball Aerospace in February 2024, were also cited as drivers behind the FTSE 100 company’s success last year.
BAE Systems says it expects sales to rise by 7%-9% in 2025, which would see the company’s revenue top £30bn this year.
A significant catalyst for BAE’s performance in 2024 was the Russia-Ukraine war, which saw fighter jets, submarines, and frigates increase in demand. Moreover, the new US administration’s announcement that the United States will no longer primarily focus on European security will likely act as a trigger for Europe and the UK to review defence spending, a reality that would further benefit BAE.
Charles Woodburn, Chief Executive, BAE Systems, said: “The results we’re reporting today reflect the outstanding efforts of our employees and continue our track record of strong top-line and earnings growth, free cash flow and orders.
“We’re supporting our customers around the world, while shaping our portfolio towards higher growth and strategically important markets. Across our business, we’re also investing in our people, facilities and technologies to drive efficiencies, boost capacity and increase our agility to deliver in a rapidly evolving environment.
“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.”
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