On Thursday, British-based armored maker, BAE systems announced its high number of orders in 2022, saying it won a record-high number of military orders last year (2022), the start of which saw Russia invade Ukraine.
Military and other armored orders reached $44.7 billion in 2022. BAE Systems said it expected the “renewed importance of armored combat vehicles in the Ukraine conflict to benefit” the group going forward.
Most of the countries in which we operate have either announced increases or are making plans to increase spending to address the elevated threat environment.”
Whilst global economic and fiscal pressures weigh on governments, the commitment to defense in our major markets remains robust.”
BAE said in its results statement.
Aarin Chierkrie, an equity analyst at Hargreaves Lansdown noted that As these are typically long-cycle , with revenues spread over several years, it gives BAE multi-year revenue visibility. An enviable asset to have in uncertain times, and the market seems to agree, with BAE being the biggest riser in the FTSE 100 (London shares index) over the past year, up nearly 50 percent.
The “record orders and financial performance give” the company confidence in delivering long-term growth and to continue investing in new technologies, facilities and thousands of highly skilled jobs, whilst increasing shareholder returns.”
Charles Woodburn-the chief executive of BAE System
Following Thursday’s results, a bit of profit-taking set in, with the group’s shares falling 1.2 percent.