The BAE Systems plc (LON: BA) share price rallied 6.55% after releasing its financial result for the half-year ended 30 June 2023. The company noted that its sales rose 11% to £12.02 billion compared to the £10.58 billion recorded in a similar period last year.
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The British multinational arms, security, and aerospace company’s operating pretax profits surged 20% to £1.26 billion from the £1.11 billion recorded in a similar period last year. The company’s directors declared an interim dividend of 11.5p per share for the half-year period, marking an 11% increase from last year’s 10.4p dividend.
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The company revealed that it had commenced the third tranche of its £1.5 billion share buyback programme on 1 June 2023 and had repurchased 123.5 million shares worth a total price of £1.0 billion as of 30 June 2023. The firm had initially repurchased 40.5m shares since 1 January 2023 at a total price, including transaction fees, of £0.4bn.
BAE Systems' board of directors further approved another share buyback program worth up to £1.5 billion. The new programme will begin once the old one is over and will be conducted over three years from its beginning.
The company revealed that its order intake during the first six months of the year was valued at £21.1 billion, translating into a record order backlog of £66.2 billion. The upbeat financial data released by BAE Systems contributed significantly to the rally in its share price.
Charles Woodburn, the BAE Systems CEO, said: “We've delivered a strong financial performance in the first half of the year, thanks to the outstanding efforts of our employees. Our global footprint, deep customer relationships and leading technologies enable us to effectively support the national security requirements and multi-domain ambitions of our government customers in an increasingly uncertain world. With a record order backlog and good operational performance, we're well positioned to continue delivering sustained growth in the coming years, giving us the confidence to continue investing in new technologies, facilities, highly-skilled jobs and in our local communities.”
BAE Systems share price.
The BAE Systems share price rallied 6.55% to trade at 995.20p, from Tuesday’s closing price of 934.00p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.