2023 EPS up 14 to 63.2 pence
Guidance was for 1012 growth
Raises annual dividend by 11
Sees EPS up 68 in 2024
Shares down 3

LONDON, Feb 21 Reuters Britain39;s BAE Systems forecast slower earnings growth in 2024 after a 14 jump last year, when the defence company39;s order backlog swelled to a record level driven by new submarine contracts and demand linked to Ukraine.

CEO Charles Woodburn said BAE, which makes submarines, Typhoon fighter jets amongst other equipment, was positioned for sustained growth in the coming years as governments spend more in defence in response to the Ukraine war, and instability in the Middle East and elsewhere.

While most of our order volume was driven by existing programme positions that predate the Ukraine conflict, orders to restock and upgrade heavy armour and munitions are starting to come through, Woodburn told reporters.

Underlying earnings per share for the current year are expected to rise 6 to 8 compared to the betterthanexpected 14 increase to 63.2 pence it reported for 2023.

Shares in BAE Systems were down 3 to 1,217 pence in morning trade. The stock had doubled since the beginning of the Ukraine war two years ago.

Bernstein analyst George Zhao said BAE39;s forecast showed the growth rampup was coming through.

While a deceleration from 2023, sustaining higher growth is the key for BAE going forward, he said.

BAE is forecasting sales growth of 1012 this year, above the 9 recorded last year.

BAE39;s forecasts include…