STOCKS | BAE Systems Raises Cash Flow Guidance as European Defense Orders Grow

According to Jin10, British defense company BAE Systems raised its full-year free cash flow guidance by about 50%, from more than £2 billion to about £3 billion ($4 billion), in a trading update on Thursday. The company maintained its forecast for full-year sales growth of 8% to 10%, saying governments in its main markets remain committed to increasing defense spending. BAE’s orders have grown as European countries buy military equipment to strengthen their weapons capabilities and reduce reliance on the United States. Ongoing conflicts in the Middle East have also prompted countries in the region, home to some of BAE’s largest customers, to upgrade their defenses. CEO Charles Woodburn said the company had delivered strong financial and operational performance so far this year, with good momentum in new orders. He said its large order backlog provided greater predictability for future business, and that BAE expected sustainable growth in the coming years as its portfolio adapted to changing threats and customer needs.