BAE Systems Reiterates FY21 Outlook

BAE Systems BAESY reaffirmed its FY21 guidance, with expected Sales to grow 3%-5% (2020: £20.86 billion) and on a Constant currency basis +5%-7%.
BAE expects Underlying EBIT to grow 6%-8% (2020: £2.04 billion) and Constant currency 10%+; Underlying EPS to increase 3%-5% (2020: 44.3p).
Free Cash Flow is expected to be >£1.0bn, and Cumulative FCF 2021-2023 to be >£4bn.
The company will pay an interim dividend of 9.9 pence per share on 30 November 2021.
BAE Systems noted US Intelligence & Security business continued to maintain a robust bid pipeline and was awarded multiple contracts in the second half to sustain its order backlog.
"Our continued good operational performance underlines our confidence in the full year guidance for top line growth and margin expansion as well as our three-year cashflow target," said Charles Woodburn, Chief Executive.
Price Action: BAESY closed higher by 1.17% at $31.26 on Friday.