BAE Systems has upgraded its full-year outlook following an 11 percent rise in half-year sales and strong operational momentum across its shipbuilding programmes, including continued progress on the Royal Navy’s Type 26 frigates on the Clyde.
In its 2025 half-year results, BAE reported sales of £14.6 billion, up from £13.4 billion the previous year, and a 13 percent rise in underlying EBIT to £1.55 billion. Basic earnings per share rose to 34.7p. Chief Executive Charles Woodburn said: “Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance.”
The company’s Clyde operations were repeatedly highlighted in the report. BAE confirmed that “five ships are in build during 2025” across its Govan and Scotstoun yards. “HMS Glasgow and HMS Cardiff have both entered the water and are progressing through final outfit at our Scotstoun shipyard, with HMS Glasgow undergoing system testing and commissioning. Unit construction and block integration of HMS Belfast, HMS Birmingham and HMS Sheffield continues at our Govan shipyard,” the company said.
BAE also marked major infrastructure and workforce investments on the Clyde. The Janet Harvey Hall, a new indoor build hall at Govan, is now fully operational, with two Type 26 frigates under construction inside. In June, The Princess of Wales formally named HMS Glasgow in Glasgow, while The Princess Royal opened the new £12 million Applied Shipbuilding Academy, providing hands-on training for apprentices and engineers.
Woodburn stated that the group’s investments aimed to “drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services.”
The company also reported continued progress on the UK’s submarine programmes. “We have delivered five of the seven Astute Class submarines to the Royal Navy and continue construction on the first three of four Dreadnought Class submarines,” it said. HMS Agamemnon, the sixth Astute boat, is now in its in-water phase, while the Devonshire Dock Hall at Barrow is back at full operational capacity following the 2024 fire.
BAE’s wider maritime activity includes the construction of the first Australian Hunter Class frigate, now at 32 of 78 units in build. In support of the UK Carrier Strike Group’s 2025 Indo-Pacific deployment, the company’s maritime teams have also played a “critical role in the national endeavour to generate, support and sustain the Portsmouth-based ships.”
In munitions, BAE noted “a sixteen-fold increase in production capacity of 155mm artillery shells” enabled by a new explosive filling facility at Glascoed, while its RBSL subsidiary has delivered four Challenger 3 prototypes and is preparing the Boxer armoured vehicle programme for full-rate production.
Looking ahead, BAE raised its sales growth forecast for the year to 8–10 percent and EBIT growth to 9–11 percent, citing strong customer demand and programme execution. Free cash flow is projected to remain above £1.1 billion.
“Our investment and high levels of customer demand mean the sector is well positioned for growth,” the company stated.
So, what is ‘full-rate production’ for the Boxer program?
Now then,
About that fire ?
It was described at the time as “Minor” yet here we see the sentence “Back at full operational capacity following the 2024 fire”.
Has it taken nearly a year then ? or was it sorted soon after ?
Another intriguing question: Has sabotage/gray zone warfare definitively been ruled out as the cause of the fire?
Somehow, in light of endless poor performance from V boats, A boats, OPVB2, T45 and now T26, the taxpayer via the government seems hell bent on boosting the coffers of shareholders. If it wasn’t funny you would cry ……but at least the RN, MOD, BAE job merry-go-round is still strong.
All very well and good that business is ramping up for BAE/Babcock, but the RN is still waiting for the new frigates
Bets on:
Which ship will go to sea trials first, Glasgow or Venturer?
I’m no betting man but I recon both of them will go to sea before HMS Daring !
😁🤔😳😱
Venturer; builder trials in Bahrain?
Data presumably available re BAES consolidated financial performance in the US? BAES has acquired a number of companies on this side of the Pond.