BAE Systems keeps guidance after strong third quarter

"We are delivering another year of good sales and earnings growth, together with strong cash flow generation," said chief executive Charles Woodburn.

BAE said it is trading in line with guidance – which it upgraded at the half-year stage – pointing to 5% to 7% growth in sales from last year's £23.3bn, 6% to 8% growth in underlying earnings before interest and tax from £2.5bn and free cash flow of over £1.8bn, down slightly from £1.95bn.

The company said it is seeing continuing customer confidence in its ability to "deliver important capabilities at a time of heightening geopolitical risk".

"Order flow on new and existing programmes, renewals on incumbent positions and progress with our opportunity pipeline remains strong," Woodburn said.

"These underpin our confidence and visibility for good top line growth in the coming years, and we continue to reinforce our value compounding model with a sharp focus on operational performance and disciplined capital allocation."

BAE announced back in August that it is spending $5.6bn to take over the space aerospace division of Ball Corp to strengthen its exposure to the space, optical and antenna solutions markets. The acquisition is expected to complete in the first half of 2024.