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BAE Systems PLC on Wednesday said trading in the second half of 2025 is in line with expectations and maintained its upgraded full-year guidance provided at the half-year results in July. The London-based defence contractor reported an order intake of more than £27 billion so far this year, including £4 billion for Typhoon aircraft for Turkey and multiple US defence contracts. BAE said the recent agreement between the UK and Norway for the supply of at least five Type 26 frigates is expected to lead to a ‘substantial order’ once contracts are finalised. Chief Executive Officer Charles Woodburn said BAE continues to deliver ‘strong financial and operational performance’, supported by a record order backlog and rising NATO defence spending. ‘The recently announced spending increases across NATO provide a very supportive backdrop for growth over the medium term,’ BAE said. The company expects sales growth of between 8% and 10% for 2025 from £28.34 billion in 2024. Underlying earnings before interest and tax are anticipated to be between 9% and 11% higher compared to £3.02 billion, while underlying earnings per share are set to climb between 8% and 10% from 68.5p in 2024. BAE highlighted that US President Donald Trump recently voiced support for the tri-lateral AUKUS programme. BAE said: ‘Momentum has continued to build around the architecture of the Golden Dome air and missile defence initiative, to which our technologies and capabilities are well aligned. We are encouraged by the momentum in Congress to end the US government shutdown, especially the positive actions of this week. To date, we do not see material effects on our US business. If the shutdown persists, delays to contract funding and timing of payments before year end are possible.’ BAE added: ‘Across the group, our portfolio aligns well with the national defence strategies of our customers and the recently announced spending increases across NATO provide a very supportive backdrop for growth over the medium term. We expect significant opportunities across our business, including space systems, missile and air defence systems, electronic warfare, combat aircraft, combat vehicles, frigates, submarines, drones and counter drones among others.’ BAE shares were 1.0% higher at 1,817.50 pence each on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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