The group – which builds ships, submarines and fighter jets – said in a trading update that it has booked around £10 billion of orders since the end of June, taking its total for the year so far to more than £30bn.
It also pointed to warship development in Scotland, with work starting on the massive new ship build hall that it claimed will “transform and enhance shipbuilding in Glasgow”.
The vast new hall at the Govan shipyard, measuring 170m by 80m, will be large enough for two Type 26 frigates to be constructed side-by-side.
BAE Systems last year secured a £4.2bn contract with the Ministry of Defence to build five more Type 26 ships. This builds on the initial contract for the first three vessels and provides confidence to invest in the long-term future of the Glasgow site.
Once complete, the hall will have two 100-tonne cranes and two 20-tonne cranes and the facility will be able to accommodate up to 500 workers per shift.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said that BAE Systems “occupies a key space in the defence market, and another promising update proves why the group’s so highly regarded in the defence space”, adding some of its biggest buyers, the UK, US and Europe, are “all expected to continue raising defence budgets over the coming years”.
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Jamie Murray, equity research analyst at Shore Capital, said: “BAE Systems is a well-managed company with exposure to international defence markets, which have structural tailwinds.”
BAE Systems, which employs 3,900 people across Scotland, said: “Our global footprint and diverse product portfolio are key competitive advantages.
“The high order flow reflects continued customer confidence in our ability to deliver important capabilities at a time of heightening geopolitical risk.”