- Boost in EPS Forecast: BAE has raised its full-year underlying EPS forecast to a range of +7% to +9%, up from the previously projected +6% to +8%.
- Sales Growth: Expected sales growth is now between +12% and +14%, which is an increase from the previous forecast of +10% to +12%.
- Ebit Increase: BAE anticipates underlying Ebit growth of +12% to +14%, compared to the earlier forecast of +11% to +13%.
- Free Cash Flow: Forecasted to be above GBP1.5 billion, up from the prior estimate of above GBP1.3 billion with an estimated value of GBP1.53 billion.
- First Half Results:
- Underlying Ebit: GBP1.39 billion, up 11% year-over-year (y/y), beating the estimate of GBP1.37 billion.
- Component Performance:
- Electronic Systems: Underlying Ebit of GBP473.0 million (slightly below the estimate of GBP478.6 million).
- Platforms & Services: Underlying Ebit of GBP216.0 million, beating the estimate of GBP186.3 million.
- Air: Underlying Ebit of GBP446.0 million (slightly below the estimate of GBP452.5 million).
- Maritime: Underlying Ebit of GBP228.0 million, exceeding the estimate of GBP216.2 million.
- Cyber & Intelligence: Underlying Ebit of GBP101.0 million, beating the estimate of GBP97.3 million.
- HQ: Underlying Ebit loss of GBP71.0 million (larger than the estimated loss of GBP64.8 million).
- EPS Performance: Underlying EPS was 31.4p versus 29.6p y/y, surpassing the estimate of 30.5p.
- Sales Results: Total sales reached GBP13.40 billion, up 11% y/y, higher than the estimate of GBP13.08 billion.
- Electronic Systems: Sales of GBP3.38 billion, beating the estimate of GBP3.18 billion.
- Platforms & Services: Sales of GBP2.09 billion, up 10% y/y, above the estimate of GBP2.0 billion.
- Air: Sales of GBP4.01 billion, exceeding the estimate of GBP3.92 billion.
- Maritime: Sales of GBP2.93 billion, surpassing the estimate of GBP2.8 billion.
- Cyber & Intelligence: Sales of GBP1.18 billion, slightly above the estimate of GBP1.16 billion.
- HQ: Sales of GBP85.0 million, well below the estimate of GBP220.8 million.
- Operating Profit: Reached GBP1.30 billion, up 5.1% y/y, matching the estimate.
- Dividend: Interim dividend per share was 12.4p, slightly below the estimate of 12.6p.
- Cash Flow Concerns:
- Free Cash Flow: GBP219 million, down 80% y/y, below the estimate of GBP226.9 million.
- Net Operating Cash Flow: GBP757 million, down 49% y/y, below the estimate of GBP848 million.
- Analyst Ratings: 14 buys, 7 holds, and 2 sells.
A look at BAE Systems PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
BAE Systems PLC, a leading defense and aerospace company, shows a promising long-term outlook based on Smartkarma Smart Scores. With a solid Growth score of 4, the company is positioned for future expansion and development. Additionally, BAE Systems demonstrates strong Momentum with a score of 4, indicating consistent positive performance trends. Its Resilience score of 3 signifies a stable and robust operational framework, showcasing the company’s ability to weather uncertainties.
Moreover, BAE Systems maintains a respectable Dividend score of 3, highlighting its commitment to providing returns to shareholders. Although the Value score is rated at 2, the company’s overall outlook remains optimistic, supported by its core focus on developing, delivering, and supporting advanced defense and aerospace systems for clients worldwide.
### BAE Systems plc develops, delivers, and supports advanced defense and aerospace systems. The Group manufactures military aircraft, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. BAE Systems services clients located throughout the world. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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