BAE Systems' order backlog hits record £70bn as world powers update defences

22 February 2024 , 09:37

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BAE Systems has £69.8 billion worth of vehicles, missiles, submarines and other equipment on its order books (Image: PA Archive/PA Images)

BAE Systems, a weapons manufacturer, has seen its order backlog reach a record high of nearly £70 billion.

This comes as countries worldwide continue to increase their military capacity. The company received £37.7 billion in new orders last year due to conflicts in Ukraine, Armenia and Gaza.

This means it now has £69.8 billion worth of vehicles, missiles, submarines and other equipment to deliver in the future. The company said it now has "a high level of visibility of our revenues for many years to come", with some of the programmes running "well into the next decade".

This year's orders included big deals for weapons systems which have been used on the battlefields in Ukraine. Hagglunds, a subsidiary of BAE, agreed to sell 246 CV90-series infantry fighting vehicles to the Czech Republic in a £1.8 billion deal. These vehicles have been tested in Ukraine since Sweden donated 50 to the country's armed forces.

In other news, the new nuclear-driven submarines, called SSN-AUKUS, that BAE is producing for the UK and Australian navies was awarded an extra £4 billion by the UK's Ministry of Defence. It also renewed its support services contract for the Eurofighter Typhoon fighter jet with Saudi Arabia, a £3.7 billion deal which lasts until the end of 2027.

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BAE's results come three days before the two-year anniversary of Russia's full-scale invasion of Ukraine. Since then, the company's share price has gone up a lot, doubling in two years because many countries want to make their defences better.

BAE said it helps "support to our government customers and their allies to fulfil their primary obligations to keep citizens safe". The company made more money before tax, £2.3 billion, up from £2 billion the year before.

The boss, Charles Woodburn, said: "We've delivered a strong operational and financial performance in 2023 and I'm extremely proud of the way our people have delivered cutting-edge equipment and services to our customers, working together with partners across our supply chain. Our performance, combined with our global footprint and record order intake, means we're well-positioned for sustained growth in the coming years."

Lawrence Matheson