BAE Systems, a major British weapons manufacturer, saw a surge in profits last year due to increased military spending worldwide driven by conflicts like Russia's invasion of Ukraine and the Israel-Gaza tension. 

According to The Guardian, the company reported a record profit of $2.9 billion before interest and taxes in 2023. Along with a significant increase in sales, they reached $27.3 billion in profit.

The company's wide-ranging products include nuclear submarines, fighter jets, tanks, ships, guns, and ammunition. BAE's CEO Charles Woodburn reveals that the company anticipates continuous growth in the coming years as global instability underscores the importance of national security measures. 

Woodburn also acknowledges that the conflict in Ukraine gave rise to underlining the significance of autonomous technology and emphasized the ongoing need for munitions and maintaining existing capabilities.

Jarek Pominkiewicz, an equity research analyst, noted that the British weapon manufacturer stands to benefit from the growing acknowledgment of the necessity to bolster defense spending, particularly in regions close to Russia's borders, like Eastern Europe and the Baltic countries.

READ NEXT: North Korea's Kim Jong Un Receives Car From Russia's Vladimir Putin in Another Sign of Warming Ties Between the 2 Countries

BAE Systems' Future

Despite BAE's strong performance, its share price experienced a slight dip due to lower margins than expected. 

Although it remains near record highs, valuing the company at nearly $41 billion. BAE's growth prospects 2024 appear promising, with an anticipated sales increase of 10% to 12%. 

The company's long-term order book also received a boost from initiatives like the Aukus pact to build nuclear-powered submarines and the global combat air program.

Woodburn also expressed satisfaction with BAE's London listing, contrasting the company's position with other UK firms that have shifted to the US due to concerns over undervaluation.

BAE's retention of its London listing is attributed to the UK government's substantial influence, including a "golden share," aimed at preventing foreign ownership.

In the future, BAE Systems will likely continue to adapt its business strategies in response to geopolitical shifts and global security challenges. 

At the same time, the British weapons manufacturing industry could seek further collaborations with international partners, particularly in regions where defense spending is on the rise.

READ MORE: At Davos, Ukraine's Volodymyr Zelenskyy Lashes Out at Russia's Vladimir Putin, Urges Allies to Step up Its Support for Kyiv