BAE Systems (BA) Trading Update summary

Operational and financial performance

• Strong operational and financial results support full-year guidance, consistent with the July upgrade.

• Trading in the second half of the year is in line with expectations, with robust delivery of critical capabilities.

• Order backlog and pipeline provide good visibility for long-term growth.

• Portfolio aligns with national defence strategies and benefits from increased NATO spending.

Guidance and outlook

• 2025 guidance unchanged from July upgrade: sales growth of 8–10%, EBIT up 9–11%, EPS up 8–10%, and FCF over £1.1bn.

• Guidance based on a GBP:USD rate of $1.28:£1; a 5 cent movement impacts sales by ~£525m.

• Preliminary results for 2025 will be announced on 18 February 2026.

Order intake and major contracts

• Over £27bn in orders secured in 2025, including £4.0bn for Typhoon aircraft for Türkiye and $3.3bn in Electronic Systems.

• $1.7bn in US combat vehicle funding and £1.1bn in MBDA orders.

• £0.9bn for Dreadnought programme; substantial Type 26 frigate order expected post-2025.