BAE Systems raises free cash flow forecast as demand remains strong

LONDON, Nov 12 (Reuters) - Britain's biggest defence company BAE Systems BAES.L raised its annual free cash flow forecast by 50% on Thursday, benefiting from customer advances, while sticking to its profit growth guidance as governments increase military spending.

• Lifts annual free cash flow guidance to £3 billion from £2 billion after it benefits from customer advances

• Reiterates forecasts it upgraded in July for underlying operating profit to rise 10% to 12% and for sales to grow by 8% to 10%

• Order intake stands at £33 billion in 2026 so far, says further agreements anticipated before the end of the year

• Given "evolving threats", CEO Charles Woodburn says BAE is "well positioned to deliver sustainable growth over the years ahead"

• Orders in the second half of 2026 include £1.6 billion related to the Global Combat Air Programme, a British, Italian and Japanese plan to build a new fighter jet, and £4.3 billion funding for UK's new nuclear deterrent submarines