Woodburn said nuclear-powered submarines and the Type 26 frigate family form part of BAE Systems’ largest long-term programs. These platforms account for a substantial share of the group’s revenue, profit and backlog.
“These are long-term in nature and account for the vast majority of our revenue, profits, and backlog,” Woodburn told investors. He said the platforms “will remain critical for many years to come.”
BAE Systems is completing delivery of the UK’s Astute-class attack submarines. It is also designing the next-generation SSN-AUKUS submarine for the UK and Australia.
“As we complete delivery of the Astute-class attack submarines, which will remain in service for many years to come, we are also designing the next-generation SSN-AUKUS submarine,” Woodburn said. The UK plans to operate the new class from the 2030s, followed by Australia in the 2040s.
Woodburn said the transition provides “long-term visibility, supporting sustained growth and value creation over time.” SSN-AUKUS is not expected to reach full production until the mid-2030s or later.
The UK government is also funding the next phase of the Dreadnought ballistic-missile submarine program. Woodburn called the decision a “clear indication” of the government’s commitment to defense and security.
Australia represents another major source of naval growth. “We expect strong long-term growth driven by the Hunter class frigate program and SSN-AUKUS,” Woodburn said.
The Hunter-class frigates are based on the Type 26 design. BAE Systems is also supplying the warship design for Canada’s River-class destroyer program.
Woodburn placed frigates and submarines among programs carrying long-term embedded value. BAE Systems’ backlog and incumbent program positions total about £260 billion, or roughly eight times annual sales.
The programs give BAE Systems exposure to naval spending across three allied markets. They also extend the company’s production and revenue outlook well beyond the current decade.
