Farnborough-based BAE Systems reports record order intake of £37.1bn

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Sam Pither

Farnborough-based BAE Systems has reported a strong performance in 2022, with an order intake of £37.1 billion, up from £21.5 billion in the previous year.

The defence firm also reported a 4.4 per cent increase in sales, bringing it to £23.3 billion from £21.3 billion.

Highlights for the year included the acquisition of Bohemia Interactive Simulations, progress on BAE’s ESG goals including work towards its NetZero 2030 target and increased self-funded R&D and capital expenditure.

Its Electronic Systems division opened three new facilities in the United States and was Selected to design energy management components for GE Aviation’s megawatt class hybrid electric propulsion system.

BAE also delivered the first eight Eurofighter Typhoons to Qatar while its first Type 26 frigate entered the water.

Charles Woodburn, Chief Executive, said: “We’ve delivered another year of strong results across the Group. Our employees have done an outstanding job to effectively manage supply chain and inflationary pressures whilst delivering critical capabilities and driving efficiencies for our customers.

“Our diverse geographic footprint, deep customer relationships and highly relevant, leading defence technologies mean we’re well positioned to support national security requirements in an elevated threat environment.

“Our record orders and financial performance give us confidence in delivering long-term growth and to continue investing in new technologies, facilities and thousands of highly skilled jobs, whilst increasing shareholder returns.”

The firm also stated it expects to see sales rise between another three to five per cent for the next financial year.

Brad Greve, Group Finance Director said, “We’ve delivered sales, underlying EPS and free cash flow all above guidance which is a testament to our people and their continued, long-term focus on operational excellence.

“Our backlog is at £59bn, we’re accelerating our investment in the business and making excellent progress on our share buyback programme, which complements the proposed increase in the dividend.

“For 2023, we’re forecasting further top-line growth, continued margin expansion, higher EPS and we’re also increasing our rolling three-year cash targets, all of which demonstrate that the business has growing momentum for the future.”

Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset. A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise. Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.