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BAE Systems announces 2015 half year results

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Ian King, BAE Systems' Chief Executive, said:

"Overall, the business performed well during the first half of 2015 during which we have leveraged our capabilities in adjacent growth markets and maintained disciplined cost control. We have also continued to invest in developing skills and new technologies for the future. These actions have provided resilience through an extended period of reduced defence spending in some key markets and ensured that BAE Systems is well positioned to benefit from a generally improving market environment."



  Six months ended 30 June 2015 Six months ended 30 June 2014 Year ended 31 December 2014
Sales £8,472m £7,611m £16,637m
Underlying EBITA2 £800m £802m £1,702m
Operating profit £700m £689m £1,300m
Underlying earnings3 per share 17.1p 17.7p 38.0p
Basic earnings per share4 12.3p 13.5p 23.4p
Order backlog1,5 £37.3bn £39.7bn £40.5bn
Dividend per share 8.4p 8.2p 20.5p
Operating business cash flow6 £(349)m £287m £1,191m
Net debt (as defined by the Group)7 £(1,939)m £(1,182)m £(1,032)m


  • Sales1 increased by £0.9bn including incremental equipment sales of £0.3bn on European Typhoon Tranche 3 aircraft and favourable exchange translation of approximately £0.2bn
  • Underlying EBITA2 of £800m after favourable exchange translation of £21m
  • Underlying earnings3 per share of 17.1p reflecting a higher finance charge
  • Large order backlog1,5 of £37.3bn providing good visibility of future sales
  • Interim dividend increased by 2% to 8.4p per share 


  • £859m demonstration phase contract agreed for the UK Royal Navy's Type 26 frigate programme
  • Good momentum continues in progressively expanding the Typhoon aircraft's capabilities, including the integration of the Captor E-Scan radar and the integration of additional weapons
  • The F-35 Lightning II programme is ramping up, including our UK-based production of rear fuselage assemblies and deliveries of the electronic warfare suite from our US business
  • The award of a contract to supply remote electronic units for the Boeing 777X aircraft means BAE Systems will provide the complete suite of flight control electronics for the aircraft's fly-by-wire system
  • Selected to provide information technology services to the US government in a single-award Indefinite Delivery, Indefinite Quantity contract
  • US Army's Enhanced Night Vision Goggle III programme now proceeding, with framework contract value of up to $435m (£277m)
  • $110m (£70m) contract from the US Army to upgrade 36 M88A1 recovery vehicles
  • BAE Systems' 37.5% share of recent contracts signed in Egypt and Qatar by the MBDA guided weapons joint venture expected to total €1.2bn (£0.9bn)
  • A total of £1.3bn of international orders are being finalised at the half year
  • Acquisition of Eclipse Electronic Systems, Inc., a provider of highly-advanced Intelligence, Surveillance and Reconnaissance products and services, completed in June
  • Strategic assessment of manpower and services businesses within the US-managed Intelligence & Security sector underway
  • Options to address an anticipated workload reduction in Australian shipbuilding business under review, with initial headcount reductions in the first half
  •  Land Systems South Africa business disposal completed

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For more information, please contact:
Richard Webster-Smith, BAE Systems
Tel: +44 (0)1252 383777 Mob: +44(0)7796 708551

Rachael Gordon,  BAE Systems
Tel: +44 (0) 1252 384719 Mob: +44 (0)7793 423682

Issued by:
BAE Systems plc
Tel: +44 (0) 1252 384710
24 hour media hotline: +44 (0)7801717739