BAE Systems has registered a sales increase of 5%, or £0.4bn to £21.3bn, for the full year 2021, compared to £20.8bn in 2020.
The company’s underlying earnings before interest and taxes (EBIT) were up 13% to £2.205bn, and underlying earnings per share (EPS) grew by 12% to 47.8p, on a constant currency basis.
BAE reported free cash flow of £1.864bn and its net debt decreased to £2.160bn, excluding lease liabilities, compared to £2.718bn in 2020.
The group’s order intake was up by £0.6bn to £21.5bn, against £20.9bn in 2020, and its order backlog dropped by £1.2bn to £44.0bn, compared to £45.2bn recorded last year.
The company noted that it completed the £500m share buyback programme.
Based on the International Financial Reporting Standards (IFRS), revenue increased by £0.2bn, operating profit increased by £459m, and basic EPS was 55.2p.
BAE Systems chief executive Charles Woodburn said: “Our strong results reflect the outstanding efforts of our employees who have continued to adapt and work closely with our customers, suppliers, and trades unions to deliver capabilities which keep nations and citizens safe.
“We are continuing to evolve our business, increasing our investments in advanced technologies to deliver differentiated solutions to meet our customers’ priorities.
“Our diverse portfolio, together with our focus on programme execution, cash generation, and efficiencies, is helping us to navigate the challenging operating environment, meaning we are well positioned for sustained top line and margin growth in the coming years.”
BAE expects sales to increase by 2% to 4% for the year ending 31 December 2022.
The company has also announced the creation of a new business, Digital Intelligence.
The business brings together the company’s digital, data, and cyber capabilities into one-fold, and aims to help its government, defence, and commercial customers worldwide to operate securely and efficiently.
Lat month, BAE Systems and the Norwegian Defence Logistics Organisation (NDLO) signed an agreement to support Norway’s CV90 fleet.