UK's BAE Systems upgrades 2026 outlook as defence orders soar
BAE Systems' Financial Performance and Defence Sector Growth
Increased Defence Orders Amid Global Tensions
LONDON, July 30 (Reuters) - BAE Systems upgraded its 2026 outlook after governments lifted defence orders given the heightened global threat level, benefiting as the U.S. quadrupled munitions production and Britain pushed ahead with submarine and fighter jet programmes.
Profit Forecast and Company Outlook
BAE, Britain's biggest military supplier, said on Thursday it now expected underlying operating profit to rise between 10% and 12% this year, up from the 9% to 11% range it had previously guided.
CEO Statement on Global Threats
"The global threat picture remains highly volatile and governments are responding with sustained increases in their defence budgets," BAE CEO Charles Woodburn said in a statement.
Recent Financial Results
First Half-Year Performance
For the first six months of the year, the company posted operating profit of £1.70 billion pounds, beating an analyst consensus of £1.66 billion and up 11% on the year earlier.
Order Backlog and Geopolitical Factors
BAE's order backlog has almost doubled since Russia invaded Ukraine in 2022, buoyed by the prospect of more spending by NATO members, while the Iran war this year means its U.S. and Middle East customers are also looking at new orders.
Technological Advancements and Defence Capabilities
The company highlighted its move to add an anti-drone weapon, the APKWS, to British Typhoon fighter jets, better protecting them in the Middle East after the start of the Iran war.
Share Price Performance
BAE's share price has soared 260% over the last five years as western nations have said they are rearming. It is up 18% in the year to date.
(Reporting by Sarah Young; Editing by Kate Holton and Paul Sandle)
