BAE Systems reports strong start to 2026 as orders flow

BAE Systems has reported strong operational and financial performance in the first four months of 2026 and maintained its full year guidance, with the company pointing to increased defence spending across all its key markets as providing a supportive backdrop for medium-term growth, according to the company.

Chief Executive Charles Woodburn said the company had delivered a strong start to the year, adding that its “geographic breadth, proven multi-domain capabilities, and focus on operational excellence and innovation are enabling consistent delivery of critical programmes” and that BAE was “well positioned for both current and future opportunities in defence.”

Notable orders received in the year to date include a contract worth approximately £2.5 billion to provide training and support equipment and services for Turkey’s recently ordered Eurofighter Typhoon aircraft, and approximately £1.1 billion of MBDA orders primarily from securing air defence contracts including Aster, VL MICA and Mistral with European customers. The Electronic Systems division received around $235 million in incremental funding under the $1.2 billion Epoch 2 missile warning and tracking satellite programme and a $325 million order under a restricted national space programme.

In Platforms and Services, Bofors received a contract worth over $200 million for ARCHER artillery systems and a $180 million contract for TRIDON Mk2 anti-aircraft systems for the Swedish Army. Maritime Solutions received a US Navy contract worth over $200 million to maintain and upgrade the USS Iwo Jima to accommodate Joint Strike Fighter flight operations.

Full year guidance remains unchanged from February, with BAE expecting sales growth of seven to nine per cent on 2025’s £30.7 billion, underlying earnings before interest and tax growth of nine to eleven per cent and free cash flow of more than £1.3 billion. The company said it expected significant opportunities across its business including space systems, missile and air defence systems, drones and counter-drone technology, electronic warfare, combat aircraft, combat vehicles, frigates and submarines.

BAE Systems will announce half year results on 30 July 2026.