BAE Systems H1 Profit Down, Revenues Rise; Lifts FY24 Outlook

(RTTNews) - BAE Systems plc (BA.L), a British arms, security and aerospace company, reported Thursday that its first-half profit attributable to equity shareholders dropped to 948 million pounds from 965 million pounds last year.

Basic earnings per share declined 1 percent to 31.4 pence from 31.8 pence a year ago. The decline reflects the increased interest cost and the amortisation of intangibles acquired with SMS.

On an underlying basis, the prior year's attributable profit was 901 million pounds or 29.6 pence per share.

Operating profit grew 5 percent from last year to 1.296 billion pounds, and underlying EBIT increased 13 percent to 1.393 billion pounds.

IFRS Revenue grew 13 percent to 12.477 billion pounds from last year's 10.997 billion pounds. Adjusted sales were 13.399 billion pounds, up 13 percent from 12.018 billion pounds a year ago.

Order intake dropped to 15.1 billion pounds from last year's 21.1 billion pounds. However, order book was at 59.6 billion pounds, higher than prior year's 58.0 billion pounds.

Further, the directors have declared an interim dividend of 12.4p per share in respect of the half year, an increase of 8 percent from last year. The dividend will be paid on December 2.

Looking ahead for fiscal 2024, BAE Systems raised underlying earnings per share guidance by 100 bps to 7 percent to 9 percent from previously expected 6 percent to 8 percent, compared to last year's 63.2 pence.

Underlying EBIT guidance is increased by 100 bps to 12 percent to 14 percent reflecting the sales profile and strong operational performance, while previous outlook was an increase by 11 percent to 13 percent from last year's 2.682 billion pounds.

Sales guidance is increased by 200 bps to 12 percent to 14 percent reflecting continued strong operational performance across all sectors. The previous outlook was an increase by 10 percent to 12 percent from last year's 25.284 billion pounds.

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