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• BAE Systems as well as the entire European defence shares has been consolidated for 6 months while the tailwind to increased defence expenditures amid rising geopolitical strife will continue for several years.
• U.S. Army has awarded BAE a $440 million contract in September to produce additional Bradley Fighting Vehicles to replace the ones the government had already sent to Ukraine.
• BAE Systems has lifted its full-year guidance following a significant increase in underlying sales and earnings for the first half of the year. For FY24, a 10%-12% surge in sales is projected.
• Underlying earnings per share are expected to grow by 7% to 9%, up from the earlier guidance of 6% to 8%. Additionally, the company anticipates free cash flow exceeding £1.5bn, up from the previous target of more than £1.3bn.
• CEO Charles Woodburn stated that the company will continue investing in new technologies, facilities, and human capital to maintain its record order backlog and help government customers stay ahead in an uncertain world.