BAE Systems posts strong 2021 financials
Construction is well advanced of the first-in-class Type 26 frigate HMS Glasgow. (Photo: UK MoD/Crown Copyright)
BAE Systems seems to have weathered the worst economic effects of the COVID-19 pandemic, as shown in its latest preliminary full-year financial results.
BAE Systems released its preliminary full-year 2021 results on 24 February, showing steady sales growth and a double-digit percentage increase in pre-tax earnings.
Sales rose by 5% in 2021 to reach £21.3 billion ($28.55 billion). While the order intake grew by £600 million to £21.5 billion, the order backlog fell by £1.2 billion to £44 billion.
Underlying pre-tax earnings increased by 13% to £2.2 billion.
A strong operational performance, despite the ongoing effects of the COVID-19 pandemic, was shown by sales growth in the Electronic Systems division, while Platforms & Services in the US saw delivery volumes surge by more than 60% as investment in new production capabilities enabled combat vehicle deliveries to continue at increased volumes.
Aircraft programmes in Qatar are ‘progressing well’, BAE Systems claimed, citing the first Qatar Emiri Air Force flight with Eurofighter Typhoon Tranche 3A in November 2021 and adding that deliveries are ‘on schedule to commence in 2022’.
The company also highlighted the initial Concept and Assessment Phase contract in July 2021 for the Tempest next-generation Future Combat Air System programme.
In terms of naval programmes, BAE Systems began construction in 2021 of the first three City-class Type 26 frigates for the UK RN, while the Canadian Surface Combatant programme entered a ‘key design milestone’ in December.
On land, the RBSL JV (in which BAE Systems participates) secured the Challenger 3 MBT upgrade contract on behalf of the British Army. BAE Systems was also selected to take part in the design concept phase for the US Army’s Optionally Manned Fighting Vehicle programme.
In its guidance for 2022, BAE Systems expects to see 2-4% sales growth and a 4-6% uptick in pre-tax earnings.
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