BAE Systems has revealed that it remains on course to meet its full-year expectations after reporting a strong operational and financial performance.

The defence and aerospace giant said it had sustained a “solid” order intake across the year-to-date, with around £25bn worth booked.

This comes as BAE also confirmed that the integration of its space and mission systems (SMS) business is “progressing as planned” with sales accelerating in the group’s H2 at accretive margins.

BAE chief executive, Charles Woodburn, said: “Focusing on operational excellence, contracting discipline and growing our workforce is enabling us to consistently deliver critical capabilities and technologies for our customers worldwide.

“At the same time, we continue to invest in our business for the long term, which together with our broad geographic and domain diversity, positions us well for continued growth in the years ahead.”

Investment director at AJ Bell, Russ Mould, commented that the “increasingly uncertain geopolitical backdrop” is a strong driver of profit and revenue for BAE

“That’s underpinned by a strong flow of orders and it maintains the extraordinary trajectory of the business since Russia’s 2022 invasion of Ukraine, since which its share price has more than doubled,” Mould added.

“The company is experiencing some currency headwinds, although the resurgence in the dollar since Donald Trump’s election success is likely to see these ease a touch in the remaining weeks of 2024.”

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, added that the £25bn of orders taken in so far this year has given the group “great visibility” over future revenue.

“Recently upgraded guidance is on track, calling for a 12-14% uplift in both revenue and underlying operating profit this year,” Chiekrie said. “With the new UK Government committing to strengthening the armed forces by upping defence, the flight path ahead looks promising for this jet-maker.”

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