BAE Systems 1Q Performance in Line With Views; Backs 2023 Guidance

By Anthony O. Goriainoff

BAE Systems said Thursday that its performance in the first quarter was in line with expectations with continued good operational performance, and backed its guidance for the year.

The U.K. defense-and-aerospace company said that given the defense spending environment and order intake so far it expects orders for 2023 to once again surpass sales for the full year.

BAE Systems said it was increasing its exposure to structurally growing major defense markets, adding that the AUKUS trilateral defense agreement between Australia, the U.K. and the U.S.--which will see Australia acquiring its first nuclear-powered submarine--was significant for the company.

The company also cited the Global Combat Air Program with Japan and Italy as well as Finland's entry into NATO, and said these multinational endeavors "further highlight our global reach and the scale and longevity of our business."

For 2023 BAE--which makes a range of military hardware and software, mainly in the U.S. and U.K.-- has guided for a 3% to 5% rise in sales, from 23.26 billion pounds ($29.23 billion) in 2022.

"We are well placed to continue to benefit through our position on Eurofighter Typhoon, our shareholding in MBDA, our BAE Systems Hagglunds and Bofors businesses in Sweden and through U.S. foreign military sale," it said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

May 04, 2023 02:35 ET (06:35 GMT)

Bae Systems (PK) (USOTC:BAESY)
Historical Stock Chart
From Apr 2024 to May 2024