Dual Band Decoy is a cutting-edge RF self-protection jammer that shields fighter jets from enemy attacks.
BAE Systems has been selected by the U.S. Navy to develop Dual Band Decoy (DBD), one of the most advanced radio frequency (RF) countermeasures in the world. DBD is a cutting-edge RF self-protection jammer that shields fighter jets from enemy attacks. |
A new weapon that uses radio waves to disable enemy electronics and take down multiple drones at once is under development for the UK’s armed forces, and it only costs 10p per shot. |
DARPA program aims to solve thermal challenges limiting electronic warfare systems
The Defense Advanced Research Projects Agency (DARPA) has awarded BAE Systems’ FAST Labs™ research and development organization a $12 million contract for the Technologies for Heat Removal in Electronics at the Device Scale (THREADS) program.
The DARPA THREADS program aims to overcome the temperature limits at the transistor scale inherent to power-amplifying functions. With new materials and approaches to diffusing the heat that degrades performance and mission life for monolithic microwave integrated circuits (MMICs), THREADS aims to resolve the thermal management challenges of today’s gallium nitride (GaN) devices. |
UK picks companies for billion-dollar hypersonic missile program |
You have to consider today's 3% drop in the context of the 95% rise of the past few years. It's just a minor ripple. |
It's fairly volatile for a large cap |
Surely it's simply a little bit of profit taking resulting in the share price consolidating a bit. Nothing goes up in a straight line. |
They must want to buy lower for some client!! |
The drop is a bit strong on a markdown to 1425 Target by Bank of America |
Un-jammable quantum technology takes flight to boost UK’s resilience
It is hoped the quantum-based systems could help flights from being hit by GPS jamming.
...... The Department for Science, Innovation and Technology (DSIT) said that Infleqtion, a quantum technology firm, has been working with aerospace companies BAE Systems and QinetiQ on the project. |
 "Berenberg: Momentum not slowing at BAE"
Higher defence spending in a world of increased conflict has provided both momentum and visibility for BAE Systems (BAES), says Berenberg.
Analyst George McWhirter retained his ‘buy’ recommendation and target price of £13.60 on the Citywire Elite Companies AAA-rated defence group, which added 0.8%, or 10.5p, to £13.92 after a positive trading update.
McWhirter said the group pointed to ‘strong operational performance’ this year and ‘high visibility for top-line growth, margin expansion and cash generation in the coming years’.
‘Full-year guidance is unchanged, which is not a surprise, although we are encouraged to see evidence of continued momentum building across the group, including through further progress on the AUKUS trilateral security pact (between Australia, UK, and the US) and high order intake, which bodes well for sustained mid-term growth,’ he said.
The high defence spending across all sectors and key markets sustained ‘order momentum and ‘the US supplemental aid package to Ukraine and the UK government’s commitment to spend 2.5% of GDP by 2030 on defence is expected to build further positive momentum’.
The group also extended its share buyback programme by another £1.5bn, which will commence on completion of the current £1.5bn programme. |
And we're there. |
”BAE Systems – full-year guidance maintained”
HL view
FWD P/E 19.6x
Prospective Yield 2.4%
BAE continues to move from strength to strength, with full-year sales and underlying operating profits set to grow at double-digit rates this year. The company manufactures heavy-duty military equipment like fighter jets, aircraft and submarines, and recent global events have increased demand for BAE's products.
Despite being a UK-based company, a whopping 42% of its sales came from the US in 2023, making it the largest single contributing region. On an absolute basis, US military spending trumps any other country in the world, so having large exposure to this market is proving very beneficial.
But BAE hasn’t stopped there. It sealed the deal on its £4.4bn acquisition of US-based Ball Aerospace in February, which should further increase its foothold on that side of the pond. Ball has unique in-space capabilities, which is seen as a major growth area in the defence industry. The integration of the new business looks to be going well and should help drive top-line and margin growth, although nothing is guaranteed.
The group booked £37.7bn worth of orders in 2023, taking the order backlog up to a record £69.8bn. And because these are typically long-cycle orders, with revenues spread over several years, it gives BAE multi-year revenue visibility.
But keep in mind that profitability hinges on an ability to estimate future costs. The long-term nature of many contracts means that the related risks and costs can change over time. Currently, its turbulent energy costs and potential supply chain issues that management has called out are the main trip hazards.
These risks are currently being navigated well and profits have moved in the right direction. The group's likely to use some of its financial firepower to acquire other businesses which can slot straight into its portfolio and begin contributing to revenue and profit growth right away. Although, given the size of the Ball Aerospace acquisition, it'll likely only be small bolt-on purchases that get added to the portfolio in the near future.
At year-end, the balance sheet was in good shape. The Ball Aerospace deal will push debt levels higher, but we don’t see this as a major issue given the group’s healthy cash flows and demand outlook. However, it does mean we could see the rate of share buybacks slow in the near to medium term.
We think BAE's in good shape to deliver on its long-term growth strategy and the market appears to agree with a valuation some way above the long-term average. Reliable revenue streams are a very enviable asset and help underpin a prospective dividend yield of 2.4%. Please remember no dividend is ever guaranteed. |
Just had an updated analyst note from HL. Very positive with a few standard caveats. The most telling part of the whole thing is the little note at the end which says:-
The author holds shares in BAE Systems
That says it all really |
Interesting to see that eps falls 1.3p per 5 cents. So dollar gbp goes to 1.40 and eps down 4p. Not the end of the world.Sooner or later, the dollar will tank. Either that's next month or next year, next decade. Who knows. |
Yes,£14 with a good wind. |
1400p today |
Let me rephrase that comment. It seems to me that this became a growth share the day Russia invaded Ukraine. |
Continued positive results and forward looking statements from company, very happy to retain in my portfolio, great capital growth which I expect to continue and very happy with the divi... long may this continue! |
Todays rns reiterates guidance and confirmation of buy back continuing |
Given that BA. has doubled in the past 2 years you are perhaps being a little slow to categorise it as a growth share. |
I'm a long term holder but am not tempted to sell just because the yield has become low due to the sharp price rise. Once I've bought a share in my income port, it's the cash income from divi growth over long periods that interests me, not the running yield or the capital value.
Another point is that I require wide diversification in my income port and as a weapons manufacturer, BA. is a desirable share for that purpose. There aren't any attractive alternatives in this sector in the UK market so selling it would lose me this industry. |
AGM tomorrow
I was thinking that, as sharescope reads forecast div of 2.4%, that isn't exceptional at todays price, it seems to be a growth/tech share now. At some time long term holders may be tempted to sell some, rebalance their portfolio and buy elsewhere with a higher yield if income is their objective |
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