"BAE Systems, Europe's largest defence contractor, has reported record-breaking results as global defence spending ramps up amid ongoing geopolitical tensions. The aerospace and weapons manufacturer posted underlying earnings before interest and tax of £3.32 billion for 2025, a 12% increase on the previous year. Sales rose 10% to a record £30.66 billion, while its order backlog reached an unprecedented £83.6 billion at the end of December."
"Total order intake for the year stood at £36.8 billion, highlighting strong demand for its military equipment. BAE, which produces missiles, tanks, warships and aircraft, has been boosted by governments worldwide increasing defence budgets, with Europe leading the rearmament drive. Notable contracts last year included a £4.6 billion deal with Turkey for 20 Typhoon aircraft, supporting 20,000 UK jobs, and an order from Norway for Type 26 frigates."
"Looking ahead, the company expects underlying earnings growth of 9-11% in 2026 and sales growth of 7-9%, reflecting continued strong demand for its defence capabilities. Shares in BAE jumped 4% on Wednesday morning, having risen nearly 20% since the start of 2026 and more than tripled since Russia's invasion of Ukraine in 2022, which sparked a surge in global defence spending."
BAE Systems achieved record financial results in 2025, with underlying EBIT of £3.32 billion, up 12% year-on-year. Sales increased 10% to a record £30.66 billion. The company's order backlog reached £83.6 billion at year-end, and total order intake was £36.8 billion, indicating strong demand for military equipment. Major contracts included a £4.6 billion Typhoon deal with Turkey, supporting 20,000 UK jobs, and a Norwegian order for Type 26 frigates. BAE forecasts underlying earnings growth of 9-11% and sales growth of 7-9% in 2026. Shares have risen sharply since 2022 amid elevated global defence spending.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]