Charlotte Keyworth's questions to BAE SYSTEMS PLC /FI/ (BAESY) leadership • H1 2022
Question
Charlotte Keyworth from Barclays asked about the outlook for order tracking in the second half of the year versus the first, given the record backlog. She also questioned the sustainability of the high Cyber margin and inquired about the company's exposure to rising interest rates on its U.S. dollar-denominated debt.
Answer
CEO Charles Woodburn cautioned that while the full year for order intake will be strong, H2 will not match the standout performance of H1. CFO Bradley Greve explained the high Cyber margin was driven by strong, but seasonal, utilization and the accretive Bohemia acquisition, with low double-digit margins expected to be sustainable. He also clarified that the company's U.S. debt is fixed, insulating it from rising interest rates on the existing structure.