(Bloomberg) -- BAE Systems Plc raised its earnings guidance, boosted by the acquisition of Ball Aerospace and growing defense spending across the globe.
The UK weapons manufacturer now expects sales to grow 12% to 14% in 2024, up from a previous expectation of 10% to 12%, it said in a statement on Thursday. It also upgraded its underlying operating profit, earnings per share and free cash flow guidance.
The outlook increase reflects the recent $5.6-billion acquisition of Ball Aerospace, renamed Space and Mission Systems, which expanded BAE’s footprint in missile, space and munition products.
BAE said its focus on technology tracks national defense strategies in major markets, which include the UK, Europe, US and Australia. It expects research and development spending to rise with investments in areas including electronic warfare, laser-guided weapons and drones.
The shares rose as much as 4% in London trading, the most since early October. The stock has advanced about 18% so far this year.
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