BAE Systems builds momentum after winning record $65b in new orders

Image credit: BAE Systems

BAE Systems has delivered another strong year of performance in 2022, both financially and operationally, with a record order intake of £37.1 billion (AUD 65.4 billion), driving the company’s defence order backlog up to £59 billion (AUD 104 billion).

Revenue was up by almost nine per cent from £19.5 billion (AUD 34.5 billion) at the end of 2021 to £21.2bn (AUD 37.5 billion) at the end of last year. Sales were also up by £2bn (AUD 3.5 billion).

The company said this achievement was based on its standing as the UK’s largest defence company, a top 10 defence prime contractor in the US, the largest defence company in Australia, and its relationships with multiple customers in the Middle East, as well as its strong European presence.

Charles Woodburn, BAE Systems chief executive, said, “We’ve delivered another year of strong results across the group.”

He pointed out that employees have done an outstanding job of managing inflationary and supply chain demands while providing essential skills and enhancing customer satisfaction.

“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,” Woodburn noted.

The BAE Systems official also said record orders and financial performance provided the company with confidence in delivering long-term growth and continuing to invest in new technologies, facilities, and highly skilled jobs, all while increasing shareholder returns.

In 2022, its US combat vehicles business has ramped up the production of key programmes like the Armoured Multi-Purpose Vehicle (AMPV) and Amphibious Combat Vehicle (ACV), and the Swedish Hägglunds business recorded outstanding levels of new orders.

The company continues full-rate production of more than 1,200 electronic warfare systems delivered on the F-35 programme.

Deliveries of the next-generation EW Eagle Passive Active Warning Survivability System to support upgrade of the US Air Force F-15 platform continued, as well as testing on F-15E and F-15EX test aircraft.

BAE has also been selected to design, test and supply energy management components for GE Aviation’s megawatt-class hybrid electric propulsion system supporting NASA’s Electrified Powertrain Flight Demonstration project.

In the labour sector, BAE hired a record number of UK apprentices and graduates who are engaged in the company’s sustainability programmes, actively participating across many elements.

Brad Greve, BAE Systems finance director, said the company anticipates top-line growth, continued margin expansion, higher EPS, and an increase in rolling three-year cash targets, all of which demonstrate that the business has growing momentum for the future.