BAE Systems (LSE:BAE) reaffirmed its full-year financial guidance after reporting a strong operational and financial performance during the opening four months of 2026. The defence and aerospace group said rising military spending across its major markets continues to support robust demand for its products and services.
Management highlighted approximately £4.5 billion in new orders secured so far this year, more than double the level reported during the equivalent period in 2025.
Major defence contracts strengthen order book
Among the new business secured was a £2.5 billion training and support agreement linked to Turkey’s recent Eurofighter acquisition, alongside £1.1 billion of new orders for MBDA missile systems.
BAE Systems said it continues to see additional opportunities emerging across several high-priority defence sectors, including missile and air defence systems, space technologies, drone and counter-drone capabilities, and electronic warfare solutions.
The company noted that increasing global security threats are driving governments to raise defence budgets, creating favourable long-term conditions across its core markets.
Full-year targets remain unchanged
The group maintained its 2026 guidance, continuing to expect sales growth of between 7% and 9%, underlying EBIT growth of 9% to 11%, and underlying earnings per share growth within the same range.
BAE also reiterated expectations for free cash flow to exceed £1.3 billion during the year.
Analysts said the company remains well positioned to benefit from sustained increases in defence spending globally, particularly due to its exposure to strategically important areas such as air defence, naval platforms, drones, space systems and electronic warfare.
Dividend increased following strong trading momentum
The company also announced a final dividend for 2025 of 22.8 pence per share, up from 20.6 pence in the previous year, reflecting confidence in cash generation and ongoing earnings growth.
More about BAE Systems
BAE Systems is a UK-based multinational aerospace, defence and security company supplying advanced military technology, weapons systems and support services to governments and defence organisations worldwide. The group operates across air, maritime, land, cyber and space domains, with major programmes spanning combat aircraft, naval vessels, missile systems, electronic warfare and defence electronics.
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