BAE Systems Forecasts Another Year of Sales Growth Amid Geopolitical Tensions — Update

By Anthony O. Goriainoff

BAE Systems said it expects sales will continue to grow this year as governments ramp up spending on military equipment amid escalating geopolitical tensions.

The U.K. defense-and-aerospace group said Wednesday that sales should grow 10% to 12% in 2024 compared with 25.28 billion pounds ($31.91 billion) that BAE reported for 2023. Sales were GBP23.26 billion in 2022.

Arms makers in Europe have been thriving since Russia invaded Ukraine almost two years ago. Members of the North Atlantic Treaty Organization have been shipping tanks, rocket launchers, air defenses, ammunition and other military equipment to Ukraine, and are now turning to weapon manufacturers to replenish their stockpiles.

In December, BAE Systems secured a 10-year contract worth up to $8.8 billion to manage the U.S. Army's main ammunition plant in Tennessee as efforts continue to increase production of artillery shells, missiles and other weapons. BAE's M777 howitzer artillery has been widely used by Ukrainian forces.

"Our focus on operational excellence continues to benefit our customers and shareholders, especially as we execute on complex, long-duration programs like Dreadnought, Type 26 and Hunter Class frigates, Typhoon and F-35 jets, electronic warfare systems, combat vehicles, and many other programs," the company said.

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

(END) Dow Jones Newswires

February 21, 2024 02:31 ET (07:31 GMT)

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