BAE Systems remains on track

BAE Systems has reported that 2021 guidance remains unchanged from the position outlined in the interim results and is evidenced by continuing good operational performance.

Despite setbacks caused by the covid pandemic, there has been reported growth as sales are expected to be up 3-5%, from the 2020 levels of £20,862 million, by the end of year.

The company has received a number of major awards in the first three quarters of 2021 which have enabled this growth.

Two major contracts were received for Eurofighter Typhoon Future Synthetic Training, valued around £220 million, and Typhoon capability enhancements, valued around £135 million.

An early design and concept contact was received for the UK future submarine programme, valued at £85 million, which aims to replace the Astute class.

The largest award reported was a ten-year IDIQ for sustain and technical support of the Limited Interim Missile Warning System programme, with a maximum potential value of $872 million.

The 2021 free cash flow is less than £1 billion and the cumulative free cash flow for the 2021-2023 period is less than £4 billion.