Defence giant BAE Systems said today it is expecting a surge in demand for its defence systems as governments ramp up spending in the wake of Russia’s invasion of Ukraine.
In a trading update, the firm said it expecting to post a 4-6 per cent boost in underlying profits for the full year, up from £2.2bn in 2021.
But bosses said the firm was now readying itself for a longer toom boost in demand as countries quickly shift defence up the agenda in the wake of war in Ukraine.
“Our geographic diversity positions us strongly as many of the countries in which we operate have announced or are making plans to increase spending to counter the elevated and evolving threat environment on multiple fronts,” the firm said.
Charles Woodburn, boss of BAE Systems, said the group now saw opportunities to “enhance the medium- term outlook as our customers address the elevated threat environment.”
BAE said it is well placed to support a surge in spending in the US, where President Biden’s Fiscal Year 2023 Budget Request includes $773bn for the Department of Defense, as well as the UK, Europe, Asia Pacific and the Middle East.
It comes after a robust quarter for the group in which it has grappled with supply chains strains but remained on track to his profit and sales guidance laid out in its annual report in December.
Shareholders are now set to hold bosses to account at the firm’s annual general meeting today.