Bae Systems Plc S/Adr (BAESY) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. As you'll hear this morning, our 2024 interim results reflect an excellent and busy six months for the business. Before I go further, I want to thank our employees, trade unions and supply chain partners for all they do to ensure we deliver on our critical commitments to our customers. As we walk through today's presentation, we hope to leave you with three clear messages. First, we have upgraded our full year guidance across all our key metrics after another six months of strong operational and financial delivery with high quality earnings growth. Second, we continue to make significant strategic progress that positions us well for the future. In particular, AUKUS, the Global Combat Air Program, or GCAP, the integration of our new US space business, and the strengthening of our autonomous unmanned aircraft systems and drone capabilities. And third, we have the visibility and are delivering on our value compounding model with the demand backdrop in the past six months enhancing the potential upside to our base case expectations. This has been another excellent half, building on the high operational cadence we delivered in 2023. Good order intake and the inclusion of our space business resulted in a new record order backlog. We've maintained contracting discipline and our focus on operational performance translated into double digit percentage sales and EBIT growth. Every one of our sectors contributed to the company's strong growth. enabled by the combination of operational performance, supply chain management and our diverse geography and capability portfolio. We are increasing investment in the business to support our growth profile. This includes expanding self-funded R&D by double digits, primarily in our electronic systems business, where...