BAE Systems says it is on track to meet its upgraded full-year guidance after what it describes as robust operational and financial performance in the second half of 2025, the company stated.
Group Chief Executive Charles Woodburn said recent progress reflected sustained global demand for the firm’s defence capabilities. “The recent agreement with Türkiye for Typhoon aircraft and announcement by Norway in respect of Type 26 frigates demonstrate sustained global demand for our leading defence capabilities,” he said.
“With a strong order backlog, established positions on key programmes and continued investment to support our future growth, we’re confident in the outlook for our business.”
The company reported more than 27 billion pounds in orders so far this year, with further agreements expected before year end. BAE Systems highlighted continued discussions with customers on emerging defence requirements and said its order pipeline provides long-term visibility across multiple domains.
In its market update, the firm said trading remains in line with expectations. It cited ongoing delivery of key programmes worldwide and noted that its portfolio aligns closely with customer defence strategies, supported by increased NATO spending. According to the company, opportunities are emerging across space systems, missile and air defence, electronic warfare, combat aircraft, armoured vehicles, naval platforms and counter-drone technologies.
In the United States, BAE Systems pointed to continued progress on the AUKUS programme and developments related to the Golden Dome air and missile defence initiative. The company said it has not yet seen material effects from the US government shutdown but warned that prolonged disruption could delay contract funding or payments.
Full-year guidance, unchanged from the upgrade issued in July, forecasts:
• Sales growth of 8 to 10 percent
• Underlying EBIT growth of 9 to 11 percent
• Underlying EPS growth of 8 to 10 percent
• Free cash flow above 1.1 billion pounds
Order intake in the second half included around 4 billion pounds for 20 Typhoon aircraft and weapons integration for Türkiye, 3.3 billion dollars for Electronic Systems work, 1.7 billion dollars for US combat vehicle programmes, 1.1 billion pounds in MBDA awards and 900 million pounds for continued Dreadnought activities. The company expects a major Type 26 frigate contract for Norway to be booked after 2025 once terms are finalised.
BAE Systems said its financial position supports investment, acquisitions, dividends and share buybacks. Total cash returned to shareholders this year is expected to reach 1.5 billion pounds.
Preliminary results for 2025 will be published on 18 February 2026.
Thanks putler for boosting our defence industry!
Hmmm…BAES & RR are apprently slowly, methodically, cleaning the clocks of principal competitors. Given sufficient time, there could be a new order in the allied MIC.