World security threats drive strong performance at BAE Systems

BAE Systems has reported a strong start to the year in its market update ahead of today’s annual general meeting.

The defence giant says that as security threats continue to grow around the world, governments are increasing their defence spending.

Bosses forecast strong growth in sales between seven and nine per cent against 2025’s £30.7bn figure.

The group also expects a nine to 11 per cent increase in underlying EBIT from the £3.3bn figure in 2025; and free cash flow of more than £1.3bn.

It also remains on track to achieve full year guidance.

Charles Woodburn, BAE Systems chief executive, said: "We've delivered a strong start to 2026, underpinning our full‑year guidance.

“Our geographic breadth, proven multi‑domain capabilities, and focus on operational excellence and innovation are enabling consistent delivery of critical programmes.

“We're well positioned for both current and future opportunities in defence."

BAE say they expect significant opportunities across the business, including space systems, missile and air defence systems, drones and counter drone technology, electronic warfare, combat aircraft, combat vehicles, frigates and submarines, among other customer priorities.

Among the highlights of the year is the £2.5bn contract in the air sector to provide training and support equipment and services to Turkey for the recently ordered Eurofighter Typhoon aircraft.

In March, Lancashire Business View reported the UK government had reached a major defence agreement with Turkey to provide training, support equipment and services for its recently ordered Eurofighter Typhoon aircraft.

BAE Systems will be delivering spares and support equipment, associated engineer and pilot training, high-fidelity training simulators and electronic warfare capabilities.

Almost 6,000 jobs directly support the Typhoon programme at Warton and Samlesbury sites.

Manufacturing of the new aircraft is already underway, with the first aircraft scheduled to be delivered in 2030.