BAE Systems reveals £23.3 billion sales as Ukraine war sees defence demand rise

The defence giant has a joint venture at Hadley Castle Works in Telford, known as Rheinmetall BAE Systems Land (RBSL), which specialises in land combat vehicles.

The company revealed a record order intake of £37.1 billion for the year in results revealed today, with its order backlog jumping to £58.9 billion.

It also saw sales increasing by 4.4 per cent to £23.3 billion. Underlying earnings per share increased by 9.5 per cent to 55.5p, it said. Dividend increased by 7.6 per cent.

The group said it expects sales to rise further in 2023, by between 3 per cent and 5 per cent, while underlying earnings are forecasted to increase by 4 per cent to 6 per cent.

The figures come as military spend rises as a result of Russia's brutal invasion of Ukraine, with the company saying: "“While it is tragic that it took a war in Europe to raise the awareness of the importance of defence around the globe, BAE Systems is well positioned to help national governments keep their citizens safe and secure in an elevated threat environment.”

A statement from the company added: "BAE Systems delivered another strong year of performance in 2022, both financially and operationally.

"This was achieved despite the headwinds presented by the COVID-19 pandemic, continued supply chain disruptions, rising inflation and ongoing labour shortages.

"Whilst we expect that some of these challenges will persist, we enter 2023 with a robust competitive position, multiple new business opportunities, and significant financial resources – all of which point to another productive year ahead for BAE Systems and our shareholders.

"These outcomes were driven by our people, their unwavering focus on our purpose – 'to serve, supply and protect those who serve and protect us' and a values-driven culture, committed to sustainable business practices and inclusion. This is underpinned by a robust governance structure and high ethical standards."

It added that global events, such as the war in Ukraine, had resulted in a renewed recognition of the importance of the defence industry and "our role in assisting governments in protecting their countries and citizens".

The company said in the past year it had designed, developed, and manufactured a cutting-edge set of products across air, land, sea, cyber and space.

"Our exceptional product portfolio is enhanced with enabling technologies including artificial intelligence, autonomy, cryptography, and cyber defence, ensuring we remain at the forefront of national security-related technologies," a statement added.