BAE Systems boosts cash outlook on strong trading and order growth

BAE Systems PLC on Thursday raises its 2026 free cash flow guidance to around £3.0 billion from more than £2.0 billion previously, following strong trading and order intake.

The London-based defence contractor said it has secured £33 billion in orders so far this year, with further agreements expected before year-end.

It maintained its full-year guidance for sales growth of 8.0% to 10%, underlying earnings before interest and tax growth of 10% to 12%, and underlying earnings per share growth of 11% to 13%.

The company said strong second-half trading in Electronic Systems, Air and Platforms & Services has more than offset subdued growth and margins in Maritime, and is consistent with first half trading.

It expected to return around £1.6 billion to shareholders through dividends and share buybacks in 2026.

Chief Executive Officer Charles Woodburn said: "Our substantial backlog provides good visibility and, with our portfolio aligned to evolving threats and customer priorities, we remain well positioned to deliver sustainable growth over the years ahead."

BAE Systems shares were 0.8% lower at 1,902.50 pence on Thursday morning in London.

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