Chief Executive Charles Woodburn stated, “We continue to deliver strong financial and operational performance in the second half of the year, underpinning the full-year guidance we upgraded in July.” He added, “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.”
Order highlights include around £4.0 billion for 20 Typhoon aircraft for Türkiye, approximately $3.3 billion in Electronic Systems, and around $1.7 billion for U.S. combat vehicle programmes. BAE Systems also received £1.1 billion in MBDA orders and £0.9 billion to continue work on the Dreadnought submarine programme.
Trading across the group remains in line with expectations, supported by a strong portfolio aligned with national defence strategies and growing NATO budgets. The company noted strong demand for capabilities across sectors including space, missile defence, electronic warfare, naval platforms and combat systems.
“Future growth is supported by our funded backlog, incumbent positions on major programmes and our significant investment in technologies, capacity and people,” said Woodburn. He cited the recent agreement with Türkiye and developments with Norway on Type 26 frigates as examples of global demand for BAE Systems’ defence capabilities.
In the U.S., BAE Systems remains aligned with key initiatives such as the AUKUS programme and the Golden Dome defence project. The company welcomed recent U.S. Congressional efforts to avoid a government shutdown and reported no material impact to date, though noted potential funding delays if the situation persists.
The group expects sales to grow by 8% to 10% in 2025, with underlying EBIT increasing by 9% to 11% and EPS by 8% to 10%, based on constant currency guidance. Free cash flow for 2025 is projected to exceed £1.1 billion, with over £1.5 billion expected to be returned to shareholders through dividends and share buybacks.
BAE Systems said its backlog, existing programme positions and expanding pipeline provide long-term growth visibility. The agreement between the Norwegian and UK governments on supplying at least five Type 26 frigates is expected to result in a substantial order post-2025 once contracts are finalised.
