BAE Systems Forecasts Steady Growth Driven by Rising Global Security Threats
BAE Systems' Performance and Outlook Amid Global Security Concerns
Strong Financial Performance and Order Growth
LONDON, May 7 (Reuters) - BAE Systems said on Thursday it was on track to meet forecasts for earnings growth of 9% to 11% this year, as the Iran war kept orders flowing into Britain's biggest defence contractor.
Key Products and Major Customers
The company, which makes Typhoon fighter jets, nuclear submarines and warships in Britain, and provides its biggest customer, the United States, with space and satellite equipment, combat vehicles, and munitions, said it had had a strong start to 2026.
Global Security Threats and Increased Defence Spending
"Around the world, security threats continue to grow, leading governments to increase defence spending," the company said in its statement.
Order Backlog and Stock Performance
Impact of Geopolitical Events
BAE's order backlog has almost doubled since Russia invaded Ukraine in 2022 and its stock has soared by almost 300%, buoyed by the prospect of more spending by NATO members.
Future Orders and Business Segments
Future orders are expected across the board, BAE said, including in its space systems, missile and air defence systems and drone and counter drone technology businesses.
Domestic Market Developments
Britain's Defence Spending Plans
In its home market of Britain, which has pledged its biggest defence-spending increase since World War Two, a defence investment plan detailing spending priorities has been delayed by months.
Reporting and Editorial Credits
(Reporting by Sarah Young; Editing by Kate Holton and Paul Sandle)
