BAE Systems The company, which attracted record orders in 2025 and is now the linchpin of Britain’s defense, is aiming for years of growth amid rising global spending.
The company’s shares rose 3.6% on Wednesday after its full-year results showed that sales soared 10% last year to a record 30.7 billion pounds ($41.7 billion).
As a result, operating profit rose 9% year-on-year to £2.93 billion, and sales rose 8% to £28.3 billion.
of FTSE100The listed company, which manufactures a wide range of aircraft, weapons, munitions and warships, has an order backlog of £83.6bn, an increase of £5.8bn from 2024.
BAE is now preparing to capitalize on years of future growth as geopolitical rifts usher in what CEO Charles Woodburn calls “a new era in defense spending” driven by “intensifying security challenges”.
The company expects sales to increase between 7% and 9% in 2026, with cumulative free cash flow guidance of more than £6bn between 2026 and 2028.
BAE Systems.
“We are well-positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the countries we serve now and in the future,” Woodburn said in a statement accompanying Wednesday’s earnings call.
“With a record backlog and continued investments in our business to enhance our agility, efficiency and production capabilities, we are confident in our ability to continue to deliver growth over the coming years.”
BAE Systems shares have increased 22.6% since the beginning of the year and more than 57% in the past 12 months.
Last year, the company secured orders worth £36.8bn. Highlights include a £4.6bn deal between the UK and Turkey for 20 Typhoon aircraft and associated weapons packages, and a £10bn deal with the Norwegian government to provide Type 26 frigates for its warship programme.
It also won a $1.2 billion contract to provide space-based missile tracking capabilities and other satellite equipment to the U.S. Space Force.
Bernstein analysts recently named BAE Systems as one of four European defense stocks pushing for greater military sovereignty in the region as countries rely on the continent for supplies of weapons and equipment from U.S. manufacturers.
—CNBC’s Sam Meredith contributed to this report.
