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.
You may also like
More from Defence Notes
-
![Top-level commitments but no meat in UK Defence Industrial Strategy’s Statement of Intent]()
Top-level commitments but no meat in UK Defence Industrial Strategy’s Statement of Intent
The initial document focused more on creating the right partnerships and inspiring investment in defence than on any details of how future UK Armed Forces would be armed.
-
![UK begins process on new industrial strategy]()
UK begins process on new industrial strategy
The first stage of developing a new UK Defence Industrial Strategy has highlighted failings in current structures with solutions expected to be proposed in next year’s full strategy.
-
![Romanians put pro-Russian candidate into presidential runoff even as the government spends west]()
Romanians put pro-Russian candidate into presidential runoff even as the government spends west
Romania joined NATO more than two decades ago and the country is vital to the alliance’s geographic reach and its ability to supply Ukraine with weapons.
-
![What the future holds for Ukraine and NATO under a Trump administration]()
What the future holds for Ukraine and NATO under a Trump administration
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
-
![RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific]()
RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
-
![Australia outlines longer punch and brings local industry onboard]()
Australia outlines longer punch and brings local industry onboard
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
