BAE Systems order book hits £33bn

Defence giant BAE Systems has secured £33bn of orders so far this year with further agreements expected before the end of 2026.

The group, which employs thousands of workers in Lancashire, revealed the figure in its latest market update.

Major second-half awards included £1.6bn linked to the Global Combat Air Programme (GCAP) – with much of the work on the project taking place at its plants in Warton and Samlesbury.

BAE Systems’ free cash flow is now expected to be raised from more than £2bn to around £3bn, while its EBIT and EPS targets ‘remain on track’ following upgrades made at the half-year stage.

The group says it is ‘well positioned’ for continued growth over the medium term.

It highlights the UK’s Defence Investment Plan, which it says 'reinforces investment across both our long-term programmes and future capabilities, including next generation fighter jets, autonomous collaborative combat aircraft and other advanced technologies'.

Much of the work on those programmes is currently taking place in Lancashire.

Increased defence spending by governments amid global uncertainty continues to provide 'significant opportunities for growth' across all the group’s key markets and domains.

Charles Woodburn, BAE Systems chief executive, said: “We have delivered strong financial and operational performance year to date, as well as positive order intake momentum.

“Our substantial backlog provides good visibility and, with our portfolio aligned to evolving threats and customer priorities, we remain well positioned to deliver sustainable growth over the years ahead.”

BAE Systems will announce its preliminary results for the year ending December 31, 2026 on February 19, 2027.