A UK engineering giant with a significant presence in Scotland has been given "further positive momentum” and multi-year revenue visibility as governments cemented their future defence plans.

BAE Systems has said UK Government defence spending commitments and the recent US military aid deal for Ukraine helped it keep its expectations on track.

A major element in its order book is a fleet of frigates being built in Glasgow, where the firm is creating a massive new shipbuilding hall.

It came as the head of the London-listed firm said it has seen a "strong" operational performance and is set to meet its targets for the year.

It said of its order intake that "defence spending is high across our sectors and key markets".

BAE said its forecasts remain unchanged and, therefore, is due to deliver sales growth of between 10% and 12% this year.

It said it is also predicting underlying earnings growth of between 11% and 13% for the year.

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The group said it is currently witnessing "high" levels of defence spending across its sectors and key markets.

"The recent passing of the US supplemental aid package to Ukraine and the commitment by the UK Government to spend 2.5% of GDP by 2030 should build further positive momentum," it added.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Defence spending remains high across the group’s sectors and key markets. Many governments are even expected to continue raising their defence budgets amid escalating global tensions.”

He said the firm “looks set to capture a good chunk of this extra spending”, adding: “The orders placed with BAE are typically long-cycle too, spread over several years, so it gives the group multi-year revenue visibility. An enviable asset to have in uncertain times.”

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Last month, Prime Minister Rishi Sunak promised an extra £75 billion in defence spending over the next six years as part of his Government's commitment.

BAE Systems pointed to a number of major contract awards including a $754 million (£604 million) production deal for armoured multi-purpose vehicles.

It also highlighted that it is currently integrating the Ball Aerospace business it acquired earlier this year, for around £4.4 billion.

It said the business, which has been renamed Space & Mission Systems has made a "good start" to the year.

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Charles Woodburn, BAE Systems chief executive, said: "Trading so far this year has been in line with expectations.

"Operational performance continues to be strong and our backlog and programme incumbencies underscore our confidence in our long-term value-creating model.

"Our global presence and diverse portfolio of products and services provide high visibility for top-line growth, margin expansion and cash generation in the coming years."

Analyst Mr Chiekrie also said: “The integration of the business is going well, with the newly renamed business, Space & Mission Systems, already securing a number of key contacts. The current £1.5bn three-year share buyback programme is moving full steam ahead, now 90% complete after less than two years. And thanks to impressive cash generation, it’s set to be followed up by another three-year buyback programme of the same size, putting extra cash back in shareholders’ pockets.”

BAE Systems new shipbuilding facility in Scotland is scheduled for "practical completion" next spring. The hall is a key element of BAE Systems’ modernisation and digitalisation of its shipbuilding facilities at Govan and Scotstoun.

Once complete, the 170-metre long and 80-metre-wide structure will provide the space and services for BAE Systems to build two frigates side-by-side.