BAE Systems posted a 14% increase in sales on a constant currency basis last year, boosted by rising defense budgets in its main markets due to Russia's war in Ukraine. Sales were worth 28.335 billion pounds, equivalent to $35.74 billion, while its order backlog reached a record 77.8 billion pounds at the end of 2024 and its order intake came in at 33.7 billion pounds.

Orders were boosted by long-term programs in the U.K. and the U.S., warship contracts with Australia, increased munitions demand, and new orders for Eurofighter Typhoon fighter jets from Italy and Spain.

Underlying earnings before interest and taxes--the group's preferred measure of profitability--rose to 3.015 billion pounds from 2.68 billion pounds.

Here is a summary of comments from analysts:

BAE Systems 2024 Results Beat Consensus

0753 GMT - BAE Systems' 2024 results beat market expectations, JPMorgan analyst David Perry says. The British aerospace and defense group reported earnings per share 3% ahead of Vuma consensus, while its free cash flow was 890 million pounds above consensus, he says. The company's evolution in 2026 should become clearer in the coming months, once the U.S. administration tables its 2026 defense budget in April, and the U.K. government sets out its military spending plans, Perry notes. "We recommend the shares as a long-term holding; however, after an 11% rally in the last five days, we don't expect a major reaction [Wednesday]," he adds. (cristina.gallardo@wsj.com)

BAE Systems' Electronic Systems Unit Boosts Group's Results

0823 GMT - BAE Systems reported sales growth across all five segments, with the electronic systems and platforms-and-services units performing particularly well, Matt Dorset, equity analyst at Quilter Cheviot, says. The demand for BAE's products and services is evident, with the order backlog reaching a record high of nearly 80 billion pounds--almost three times its annual sales, he says. The British aerospace and defense manufacturer has substantial exposure to European demand, just as the continent, including the U.K., prepares to step up defense spending, Dorset says. "We continue to see structural tailwinds supporting BAE, driven by increased global defense spending," he writes. Shares are up 0.5% at 13.44 pounds. (cristina.gallardo@wsj.com)

BAE Systems Results Are Positive, Berenberg Says

0857 GMT - BAE Systems released a strong set of 2024 results, Berenberg says in a note. The highlight is free cash flow outperformance of around 900 million pounds. That stems from high cash conversion in the platforms-and-services and air divisions, Berenberg says. The company's 2025 free cash flow guidance is around 700 million pounds below consensus, although the 2024-25 cumulative free cash flow is around 200 million pounds ahead after the 2024 performance. BAE's share price falls 2.1% in early morning trade but Berenberg says: "This morning's results should be taken positively, in our view." (alistair.macdonald@wsj.com)

BAE Systems 2024 Results Are Strong

0926 GMT - BAE Systems released a strong set of 2024 results, with outperforming free cash flow due to high cash conversion in the platforms-and-services and air divisions, Berenberg analysts say. However, the London-listed aerospace and defense group's free-cash-flow guidance for 2025 is about 700 million pounds below consensus, they say. The implied earnings-per-share guidance for this year is 1% below consensus, they add. Still, Wednesday's results should be taken positively, the analysts say. Shares are down 2.4% at 13.05 pounds. (cristina.gallardo@wsj.com)

BAE Systems' 2025 Guidance Is Modest

0947 GMT - BAE Systems guidance for 2025 is modest and unlikely to trigger material upgrades, Shore Capital analyst Jamie Murray says. The London-listed aerospace and defense manufacturer expects sales, EBIT and earnings per share to rise on year by 7%-9%, 8%-10%, and 8%-10%, respectively. These are all in line with Shore Capital's current forecasts. This means the stock is likely to trade in line or narrowly behind the market, Murray says. While BAE Systems benefits from higher defense spending globally, its size and exposure to long-term contracts restrict its ability to rapidly grow the top-line, he says. Shares are down 1.2% at 13.21 pounds. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

February 19, 2025 05:16 ET (10:16 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.