BAE Systems (BA) Trading update summary

Operational and financial performance

• Strong operational and financial performance delivered in the first four months of 2026, supporting full-year guidance.

• Increased defence spending across all key markets is driving growth opportunities.

• Portfolio aligns with customer priorities, including space, missile and air defence, drones, electronic warfare, combat vehicles, and naval systems.

Guidance and outlook

• Full-year guidance for 2026 maintained: sales growth of 7–9%, underlying EBIT growth of 9–11%, and underlying EPS growth of 9–11%.

• Free cash flow expected to exceed £1.3bn in 2026.

• Guidance based on constant currency, with sensitivity to GBP:USD exchange rate movements.

Order intake and contracts

• Secured a £2.5bn contract for Eurofighter Typhoon support for Türkiye.

• Received £1.1bn in MBDA air defence orders from European customers.

• Space & Mission Systems awarded $235m for Epoch 2 missile warning satellites and $325m for a restricted national space programme.

• Bofors secured over $200m for ARCHER artillery and $180m for TRIDON Mk2 anti-aircraft systems for Sweden.

• Maritime Solutions received a US Navy contract over $200m for USS Iwo Jima upgrades.