Woodburn said the group’s broad geographic footprint gives it access to opportunities across several of the world’s largest defence markets. That exposure also reduces the risks associated with relying heavily on a single country, region or capability area.
The UK’s Defence Investment Plan is set to provide almost £300 billion for defence through 2030. Woodburn said the plan supports established programmes and newer technologies, including next-generation combat aircraft and autonomous Collaborative Combat Aircraft.
He welcomed the plan but said further work was needed to convert its strategic commitments into defined programmes. The government must also establish a clear route towards NATO’s target of spending 3.5% of gross domestic product on core defence requirements, he said.
Woodburn pointed to the funding secured for the Global Combat Air Programme as one of the plan’s most significant elements for BAE Systems. The support has been translated into a multi-government funding arrangement for Edgewing, the joint venture delivering GCAP.
Europe has become one of the group’s strongest growth markets. BAE Systems’ sales in the region increased by 30% during the first half of 2026, significantly outpacing the company’s overall growth rate.
The region now accounts for 33% of BAE Systems’ total order backlog, compared with 13% of current sales. Woodburn said that difference provides strong visibility of further European growth over an extended period.
European governments are seeking to rebuild military readiness while assuming greater responsibility for the continent’s security. BAE Systems is responding with investment in production capacity, efficiency and additional capabilities across combat air, land systems, missiles, drones and counter-drone technologies.
Woodburn said most European countries were increasing defence expenditure under commitments to reach NATO’s new spending targets by 2035. The group expects those national investment plans and wider alliance commitments to support demand across its portfolio for years to come.
