H1 financials coincide with new Tempest contract for BAE Systems
Team Tempest picked up a new £250 million contract from the UK MoD to kick off the Concept and Assessment phase of the UK FCAS programme. (Photo: BAE Systems)
BAE Systems logged higher year-on-year sales and order intake in H1 2021, the UK-based defence and aerospace group reported on 29 July.
Sales H1 2021 reached £10.03 billion, generating an operating profit of £1.3 billion. These figures mark a year-on-year increase of 1.66% and 61.3% respectively.
Order intake rose by 13.3% to £10.58 billion compared with H1 2020, while the order backlog held steady at £44.6 billion (the figure at the end of H1 2020 was £46.1 billion)
In its results announcement on 29 July, BAE maintained its full-year sales growth forecast of 3-5% over the 2020 figure of £9.87 billion.
BAE Chief Executive Charles Woodburn said: ‘We are well-positioned for sustained growth in the coming years and are ramping up our investments in advanced technologies.’
These technologies include the Future Combat Air System (FCAS) for the UK, in which BAE plays a leading role in the Team Tempest industry consortium. The H1 financials announcement coincided with news that the MoD has awarded Team Tempest an initial £250 million contract, marking the formal start of the Concept and Assessment phase to develop the next-generation air combat platform.
‘The contract will see investment in the digital and physical infrastructure on which the programme will be developed, putting it on a “digital first” footing whereby simulated design and testing can significantly reduce costs, time and emissions,’ the MoD added.
Related Programmes in Defence Insight
More from Defence Notes
-
Amazon Project Kuiper emphasises user-friendly solutions for multi-domain connectivity (Studio)
At DSEI 2025, Shephard's Alix Valenti spoke to Project Kuiper's Rich Pang about the importance of enabling seamless communication between allied forces such as NATO members in challenging operational environments.
-
Israel defence ministry pushes ambitious spending plans for tanks, drones and KC-46 aircraft
The procurement and acceleration production plans – some of which still await approval – across the air and land domains will aim to strengthen the operational needs of the Israel Defense Forces.
-
US reforms its defence acquisition system to focus on commercial capabilities
This shift is planned to accelerate the procurement and fielding of capabilities. As part of this strategy, the US also intends modernise its regulations in an attempt to change its bureaucratic and risk-averse culture.