February 18, 2026 (Global) – * reported a record order backlog and strong financial performance** for 2025, driven by rising global defence spending amid heightened geopolitical tensions. The UK‑based aerospace and defence giant highlighted robust sales growth, increased profitability and continued demand for advanced military systems from governments and allied forces worldwide.
“In a new era of defence spending, driven by escalating security challenges, we’re well‑positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future,” said Chief Executive Charles Woodburn.
BAE Systems reported a record order backlog of £83.6billion at the end of 2025, up from £77.8billion in 2024, reflecting strong order intake across fighter jets, naval vessels, combat vehicles and other defence platforms. The company’s sales climbed 10% to a record £30.7billion, while underlying earnings before interest and tax (EBIT) rose 12% to £3.32billion. Net profit also showed a modest increase, illustrating broad‑based performance gains across its portfolio.
Highlights of BAE Systems’ 2025 Performance
- Record order backlog – £83.6billion, the highest in the company’s history.
- Sales up 10% – record revenue of £30.7billion, supported by major defence contracts from European and global customers.
- Underlying EBIT growth – 12% increase to £3.32billion.
- Strong order intake – £36.8billion in new orders, underscoring sustained demand.
- Dividend increase – 10% rise reflecting confidence in long‑term performance.
BAE Systems attributed the backlog growth and solid financials to heightened defence spending by NATO members and other allied nations, driven by ongoing geopolitical uncertainty, particularly in Europe following Russia’s invasion of Ukraine and broader global security concerns. The company noted that the strong backlog provides long‑term revenue visibility, with a book‑to‑bill ratio above 1.0, and underlines its strategic role in delivering advanced defence capabilities.
Looking ahead, BAE Systems expects continued growth in 2026, forecasting 7%–9% sales growth and 9%–11% growth in underlying earnings, supported by its robust order book and ongoing investments in technology, capacity and global operations.
Industry analysts say the results reflect a broader global trend of increasing military budgets and heightened defence procurement, as governments prioritise modernising forces and strengthening deterrence capabilities. This environment is likely to benefit major defence contractors such as BAE Systems through sustained demand for advanced platforms and long‑term contracts.
