Published by Global Banking & Finance Review®
Posted on November 12, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleBAE Systems forecasts profit growth driven by strong demand and significant orders, with potential U.S. shutdown impacts.
LONDON (Reuters) -British defence group BAE Systems' projected profit growth this year is underpinned by sustained demand that includes orders from Turkey for Typhoon fighter jets and Norway for Type 26 frigates, it said on Wednesday.
More than 27 billion pounds ($36.2 billion) of orders have been secured so far this year and further agreements are expected before the end of the year, Britain's largest defence company said.
A large supplier to the United States, the company also highlighted the chance that payments could be delayed if the U.S. government shutdown continued.
"To date, we do not see material effects on our U.S. business," it said. "If the shutdown persists, delays to contract funding and timing of payments before year-end are possible."
Shares in the group, which have risen by 57% since the start of the year, were up 0.5% in early deals.
Chief Executive Charles Woodburn said the company was delivering a strong financial and operational performance.
"With a strong order backlog, established positions on key programmes and continued investment to support our future growth, we're confident in the outlook for our business," he said.
BAE Systems, which upgraded full-year guidance in July, expects to increase sales by 8-10% and underlying operating profit by 9-11%.
($1 = 0.7451 pounds)
(Reporting by Paul SandleEditing by Louise Heavens and David Goodman)
Profit growth refers to the increase in a company's earnings over a specific period, indicating improved financial performance and operational efficiency.
An order backlog is a list of orders received by a company that have not yet been fulfilled, often indicating future revenue potential.
Operating profit is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.
Typhoon fighter jets are advanced multirole combat aircraft designed for air superiority and ground attack missions, manufactured by BAE Systems and other partners.
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