BAE Systems released its full-year 2025 financial results on February 18, 2026, reporting record annual sales of £30.7 billion, up 10% year-on-year, and underlying EBIT of £3.32 billion, up 12%. The order backlog reached a record £83.6 billion, and the company took in £36.8 billion in new orders during the year. Shares rose approximately 3-4% on the news.
CEO Charles Woodburn described the environment as a 'new era of defence spending' driven by geopolitical tensions, including Russia's invasion of Ukraine. He urged the UK government to publish its delayed Defence Investment Plan, saying industry needs clarity to invest and plan. Major 2025 contracts included 20 Typhoon jets for Turkey (valued at ~£4.6 billion) and Type 26 frigates for Norway.
For 2026, BAE guided sales growth of 7-9% and underlying EBIT growth of 9-11%, slightly slower than 2025 but still strong. Cumulative free cash flow for 2026-2028 is expected to exceed £6 billion. The dividend was raised 10% to 36.3 pence per share.
Simultaneously, over 1,200 Unite union members at BAE's Lancashire factories in Warton and Samlesbury have been striking since February 2, demanding a 5.2% pay raise for 2026 to compensate for below-inflation increases in 2025. BAE has offered 3.7%. Unite called the company's profits 'obscene' given the pay dispute.