BAE Systems News
7 articles
growth-positive
Russia’s invasion of Ukraine sparked a defense boom. It’s likely to outlast the war
Western defense companies have seen a boom in business since Russias invasion of Ukraine two years ago. The stocks of top US and European defense contractors, including BAE Systems, Thales, Rheinmetall, Lockheed Martin, and Northrop Grumman, have all risen since February 23, 2022. These companies have either provided weapons for the battlefield in Ukraine or signed agreements to do so. Major defense contractor Saab has invested billions to build up production capacity and expanded its workforce by 3,600 people since the start of 2022. The companys profit soared 30% last year to hit an all-time high. BAE Systems also reported a profit of £2.6 billion ($3.3 billion) in 2023, up 8% from 2022.
CustomersExpand
growth-positive
The West faces years-long battle to rearm, warns BAE Systems
BAE Systems has warned that rebuilding defence industries in the face of Russian aggression will take years. The company has seen a record £70bn backlog of orders due to global tensions increasing demand for weapons and military equipment. Governments have been urging arms manufacturers to increase production as quickly as possible, but this has proven to take longer than expected. BAE has increased production of Nato-standard 155mm shells at its factory in Sunderland, following new orders from the Ministry of Defence. The company won contracts worth £38bn in 2023, including deals related to the UK’s nuclear deterrent submarines, the AUKUS defence pact and combat vehicles.
CustomersExpand
growth-negative
Wasteful Britain needs to buy a new arsenal for war with Russia
The article discusses the need for the UK to increase its defense spending in light of increasing military threats from Russia and China. It criticizes the UK Ministry of Defence for its inefficient spending and argues that the UK should focus on improving its military capabilities rather than using defense money for social benefits or to subsidize industries. The author suggests that the UK should buy existing products off the shelf from overseas makers and increase its defense spending to at least 4% to 5% of GDP, up from the current 2%. The article also mentions the potential impact of the US pulling out of NATO, which would significantly weaken the alliances military power.
Management ChangesInvestment
growth-positive
Paddy Power owner plans to quit FTSE 100 in fresh blow to London
Flutter, the owner of Paddy Power, PokerStars, and Betfair, has announced plans to make New York its primary listing, delivering a blow to the London Stock Exchange. The company, which is worth £28.9bn, sees the US as its natural home and will work towards shifting its primary listing to New York, while retaining a secondary share listing in London. This move is expected to make Flutter ineligible for inclusion on FTSE indexes. The company will ask shareholders to vote on the plan at its AGM in May.
Public Trading
growth-positive
How the Israel-Hamas war propelled BAE Systems to record highs
The recent conflicts in the Middle East and Ukraine have led to a surge in demand for ammunition, benefiting defense companies like BAE Systems. The companys shares have risen 12% since the conflict between Hamas and Israel began earlier this month, increasing its value to £33bn. BAE Systems has been a significant supplier to Israel, with estimates suggesting the value of components supplied could be more than £300m since 2016. However, the UKs arms trade with Israel has been criticized by campaigners. Despite this, analysts predict that the demand for weaponry and munitions will continue to grow in the long term.
CustomersInvestment
growth-positive
How the Israel-Hamas war propelled BAE Systems to record highs
The recent conflicts in the Middle East and Ukraine have led to a surge in demand for ammunition, benefiting defense companies like BAE Systems. The UK-based companys shares have risen 12% since the conflict in Israel began, boosting its value to £33bn. The UK approved £34m of military exports to Israel last year, up £23m from the previous year. This includes orders for equipment such as submarine components, radio gear, and armor-piercing ammunition. However, the UKs arms trade with Israel has been criticized by campaigners. Despite this, analysts believe that the demand for weaponry and munitions will continue to grow in the long term.
CustomersInvestment
growth-positive
Elbit Systems buys BAE Systems Rokar
Elbit Systems Ltd. has announced the acquisition of BAE Systems Rokar International Ltd. for $31 million. Rokar specializes in the development and manufacture of high-end GPS receivers and guidance systems for defense applications. The acquisition will enhance Elbit Systems capabilities in the growing area of networked precision fire solutions.
Acquisition
