Britain's biggest defence company BAE Systems raised its annual free cash flow forecast by as much as 50 per cent on Thursday, benefiting from customer advances, while sticking to its profit growth forecast as governments boost military spend.
Lifts annual free cash flow guidance to around £3 billion ($3.99 billion) from previous guidance of more than £2 billion after it benefits from customer advances.
Reiterates forecasts it upgraded in July for underlying operating profit to rise 10 per cent to 12 per cent and for sales to grow by eight per cent to 10 per cent.
Shares rise one per cent to 1,937p. Stock is up 13 per cent in the year to date.
Order intake stands at £33 billion in 2026 so far, says further agreements anticipated before the end of the year.
Given "evolving threats", CEO Charles Woodburn says BAE is, "well positioned to deliver sustainable growth over the years ahead".
Orders in the second half of 2026 include £1.6 billion related to the global combat air programme, a British, Italian and Japanese plan to build a new fighter jet, and £4.3 billion funding for UK's new nuclear deterrent submarines.
(Reporting by Sarah Young, Editing by Paul Sandle)