BAE Systems has recorded a 9% year-on-year jump in sales, increasing to £15.7bn in the six months to 30 June.

The FTSE 100 aerospace, arms and information security company also saw its order intake rise by almost 25% annually to £16.4bn, following contract agreements with the UK and US governments.

In this period, BAE’s earnings increased by 11% to £1.7bn, while its earnings per share rose by 13% to 38.9 pence.

The firm said it continues to invest in its business to drive innovation, enhance efficiency and boost capacity, allowing it to deliver on programmes and “rise to the emerging threats” its government customers are facing.

In H1, BAE also returned £933m to shareholders through dividends and share buybacks, marking a 10% year-on-year increase.

Chief executive at BAE, Charles Woodburn, said its “outstanding teams have delivered another strong period of operational and financial performance”.

He stated: "Alongside our focus on meeting our customers' needs today, we continue to invest in our business to accelerate innovation, drive efficiencies and boost capacity, so we can get mission-critical capabilities into the hands of those who need them, faster.

"Examples include our new collaborative combat “aircraft, designed to enable our customers to deploy a combined future force of crewed and uncrewed fighter jets, and investment in our facilities in Texas and New Hampshire to support the US government's ambition to quadruple production of critical munitions.”

As a result, the group has upgraded its full-year guidance, with sales expected to increase by between 8% and 10%, rising from between 7% and 9%.

Its underlying earnings and earnings per share expectations have also been increased from between 9% and 11% to between 10% and 12% respectively.

Furthermore, its 2024 to 2026 cumulative free cash flow expectations have risen from over £6bn to over £6.7bn.

Woodburn concluded: "The global threat picture remains highly volatile and governments are responding with sustained increases in their defence budgets. The combination of our proven execution, diverse geographic footprint and continued investment in our technology and facilities, alongside our healthy order backlog and growing opportunities across our markets, positions us to keep delivering long-term growth."

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