BAE Systems raises free cash flow forecast as demand remains strong

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

• Lifts annual free cash flow guidance to around £3 billion from previous guidance of more than £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%

• Shares rise 1% to 1,937 pence. Stock is up 13% in the year to date

• 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

(Reporting by Sarah Young, Editing by Paul Sandle)