BAE Systems has stuck to its guidance for earning per share to grow by 3-5 per cent this year compared to 2020.
The multinational arms and aerospace company has kept its improved underlying position unchanged from the outlook it outlined at its interim results.
It says demand for its products and services remains high.
Demand has been stable during the pandemic with governments sticking to military and security commitments.
It anticipates European nations including Germany and France will boost their defence budgets and move towards 2 per cent GDP NATO commitments.
Earlier thus year, it won a £135m contract to upgrade the Eurofighter typhoon weapons system.
Sales are still expected to increase year-on-year by 3-5 per cent, while the underlying EBITDA is forecast to rise by 6-8 per cent.
The company is also enjoying free cash flow in 2021 of over £1bn, with a cumulative free cash flow between 2021-2013 of more than £4bn.
It has also announced that it had to date completed £308m pounds of a £500m share buyback announced earlier this year.
Charles Woodburn, BAE Systems chief executive, said: “Our continued good operational performance underlines our confidence in the full year guidance for top line growth and margin expansion as well as our three-year cashflow target
BAE Systems will announce its financial results for the year ending 31 December 2021 on 24 February 2022.