BAE Systems (LSE: BA) reassured investors it remains on track to deliver higher earnings, buoyed by increased defence spending commitments from the UK and US.
The company said it benefits from the recent US aid package to Ukraine and the UK’s pledge to boost defence spending to 2.5% of GDP by 2030.
BAE, the UK’s largest military supplier, reiterated its February forecast for earnings per share to grow 6%-8% in 2024 alongside a 10-12% rise in revenue. The company also sees potential for further growth in the AUKUS programme, a trilateral security pact between Australia, the UK, and the US.
Shares in BAE have surged 24% so far this year, with a slight increase of 0.5% at today’s opening.
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