BAE Systems announced a rise in net profit for 2025 and a record order backlog, fueled by governments increasing defense budgets amid global security challenges.
The British military equipment maker reported Wednesday that net profit grew five percent last year to £2.1 billion ($2.8 billion), with revenue climbing eight percent to £28.3 billion.
Chief Executive Charles Woodburn highlighted the company's record order backlog for fighter jets, missile launchers, nuclear submarines and other products, which hit £83.6 billion in 2025, up from £77.8 billion in 2024.BAE booked orders worth £36.8 billion last year alone, including major contracts from Turkey and Norway.
Woodburn stated, “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.”
The company has benefited alongside other defense contractors from heightened military spending, spurred by Russia's war in Ukraine. NATO allies committed to five percent of annual output on defense by 2035, while European members face pressure from U.S. President Donald Trump to boost budgets. UK Prime Minister Keir Starmer recently urged Britain to go faster in raising military spending.
BAE forecast further rises in sales and underlying earnings before interest and tax for 2026. Shares climbed more than three percent in morning trading, topping London's FTSE 100 index.
