BAE figures rise amid heightened uncertain times

Defence giant BAE Systems’ sales hit £28.3bn last year as countries across the world ramped up their military spending amid heightening global tensions.

The business, which employs almost 12,000 people at its military aircraft plants in Warton and Samlesbury, also saw underlying earnings before tax and interest rise by 14 per cent to more than £3bn.

The group reported growth across all its divisions including the Air sector, according to its full year results released today.

They show that BAE’s order backlog at December 31, 2024, stood at 77.8bn, an £8bn rise on the previous year.

Its Air sector welcomed orders for additional Typhoon aircraft from Italy and Spain while also advancing plans to deliver next generation fighter jets under the Global Combat Air Programme (GCAP).

Charles Woodburn, chief executive of BAE Systems, said: “The results we're reporting today reflect the outstanding efforts of our employees and continue our track record of strong top-line and earnings growth, free cash flow and orders.

“We’re supporting our customers around the world, while shaping our portfolio towards higher growth and strategically important markets.

“Across our business, we’re also investing in our people, facilities and technologies to drive efficiencies, boost capacity and increase our agility to deliver in a rapidly evolving environment.

“Based on the exceptional visibility of our record order backlog and sustainability of our value-compounding business model, we remain confident in the positive momentum of our business into the future.”

BAE says its Air sector workforce in Lancashire is providing “vital frontline combat air capabilities to UK and international customers, making an important contribution to safeguarding national defence and security.”

A spokesperson said: “This includes providing around-the-clock support to the Royal Air Force Typhoon fleet, as well as leading the UK’s industrial contribution to GCAP to deliver a next generation combat aircraft.”

In 2024, BAE Systems’ Air sector reached an agreement with industry partners in Italy and Japan to form a joint venture to develop next generation fighter jets under GCAP, subject to regulatory approvals;

It also delivered four further Typhoons to Qatar and welcomed additional Typhoon orders for 25 aircraft from Spain and up to 24 from Italy, major units for which will be manufactured at its facility in Samlesbury.

The company began flight trials on the new Typhoon radar, ECRS Mk2, for the Royal Air Force from its flight-testing facility in Warton.

During the year BAE recruited almost 1,000 experienced professionals and almost 600 graduates and apprentices, with plans to hire thousands more in 2025.

And it announced more than £400,000 further funding to support young people’s education programmes in Lancashire, helping to enhance digital and cyber skills in the region.