The British defense company BAE Systems is optimistic about the future due to the tense geopolitical situation. The company is benefiting from increasing global demand for defense equipment, particularly artillery systems and other weapons systems.
Last year, BAE Systems posted surprisingly strong results, boosted by a record order backlog of almost 78 billion pounds (93,8 billion euros). Numerous government contracts, including multi-billion dollar supply contracts with Australia, contributed to this success. Sales rose by 14 percent to 28,3 billion pounds, while adjusted operating profit also climbed by 14 percent to over 3 billion pounds. The bottom line was that the group earned a good 2 billion pounds, compared to around 1,9 billion the previous year.
BAE shares, which initially started cautiously on the London Stock Exchange, rose by 1,7 percent over the course of the day. Like other defense stocks, BAE Systems shares also benefited from rising Western defense spending as a result of the Ukraine war.
BAE Systems produces a wide range of military equipment, including armored vehicles, torpedoes and weapons systems. The company is currently working with the Italian defense group Leonardo and Mitsubishi Heavy Industries from Japan on the development of the sixth generation of fighter jets. Management has also shown itself open to a partnership with the aircraft manufacturer Airbus, particularly in the field of unmanned systems.
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