Chief Executive Charles Woodburn stated, “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.” He added, “In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services.”
Group sales rose by 11%, with organic growth reaching 9%, reflecting contributions from all sectors. Underlying EBIT increased by 13%, pushing the Group’s return on sales to 10.6%, while underlying EPS rose by 12% to 34.7p.
The company recorded a free cash outflow of £368 million, which included movements on customer advances and was in line with expectations. Order intake remained strong at £13.2 billion, with the order backlog standing at £75.4 billion.
Key project milestones were achieved in the period, including the keel laying of HMS Dreadnought, the first of four Dreadnought Class submarines under construction for the Royal Navy. The Global Combat Air Programme (GCAP) progressed with £1 billion in additional UK funding and the launch of Edgewing, a joint venture with partners in Italy and Japan.
In the US, BAE secured a $1.2 billion contract with the US Space Force to deliver satellite-based missile tracking capabilities. The company also celebrated the 500th delivery of the Armored Multi-Purpose Vehicle (AMPV), which is in full-rate production for the US Army.
Support for the Royal Navy included readiness efforts for the UK Carrier Strike Group 2025 and the deployment of Malloy T-150 uncrewed air systems for ship-to-ship logistics. HMS Glasgow, the first of eight Type 26 frigates, was officially named by Her Royal Highness The Princess of Wales, with sister ships HMS Cardiff, HMS Belfast, HMS Birmingham and HMS Sheffield all progressing in construction.
Significant investments were made to support future growth, including the opening of a $250 million ship repair complex in Jacksonville, Florida, and new facilities in Glasgow. These include the Janet Harvey Hall and the Applied Shipbuilding Academy, the latter officially opened by Her Royal Highness The Princess Royal.
In Sheffield, Secretary of State for Defence John Healey inaugurated a £25 million artillery factory restoring key manufacturing capabilities in the UK. Further investments exceeded £8 million in energetics and propellants to enhance munitions production and supply chain resilience.
The company also advanced its workforce development, progressing towards its target of recruiting 2,400 graduates and apprentices in the UK in 2025. In South Australia, BAE welcomed its largest-ever intake of apprentices as part of a broader recruitment drive.
Source: BAE Systems (press release).
