BAE Systems (BA) CMD 2025 Presentation summary

Financial performance and growth

• Sales grew from £7.4bn in 2021 to £8.5bn in 2024, a 14% increase, with underlying EBIT up 30% to £1,007m and operating cash flow up 127% to £1,243m, generating £4.6bn in cash over three years.

• Backlog increased by 50%, with a 5% CAGR in sales and 9% CAGR in EBIT, and a 140 basis point margin improvement.

• Strong growth potential is highlighted for revenue, EBIT, and cash, underpinned by a well-positioned core business and an evolved portfolio.

Portfolio and market positioning

• Business spans platforms (51% of 2024 sales) and services (49%), with a global workforce of 27,800 and established market positions in the UK, US, Europe, Saudi Arabia, Qatar, Japan, and Australia.

• Portfolio includes complex combat air, emerging and disruptive technologies, support services, training, and a leading position in the missile industry through MBDA.

• MBDA holds a €37bn order backlog at end 2024, with €2.5bn investment planned over five years and a 37.5% shareholding.

Strategic partnerships and regional presence

• Embedded as a lead sovereign industrial partner in the UK, with key roles in RAF training and frontline capability.

• Long-standing partnerships in Europe (Panavia, Eurofighter, MBDA) and NATO, with GCAP and FalconWorks® expanding collaborations.

• Strong US presence via F-35 partnership with Lockheed Martin, technical support for T45 and AV8B, and new opportunities in uncrewed systems.

• Sixty-year partnership in Saudi Arabia, with end-to-end activities and a workforce of 7,000, 80% of whom are Saudi nationals.

• Growth opportunities in Qatar, Oman, and Asia, including Australia and Japan, leveraging FalconWorks® and GCAP partnerships.