BAE Systems’ strong first half drives up full-year guidance

BAE Systems has upgraded its sales and underlying EBIT guidance for the full year following strong interim results helped by the “significant success” of its combat air business.

In the six months to 30 June 2025, the defence giant grew sales by 11 per cent to £14.6bn and underlying EBIT grew by 13 per cent to £1.5bn on a constant currency basis.

The group says that sales are now expected to increase in the range of eight per cent to ten per cent with underlying EBIT expected to rise in the range of nine per cent to 11 per cent.

BAE, which employs around 12,000 people at its Warton and Samlesbury sites in Lancashire, says it has experienced “significant success” across its combat air business in the region.

Its air sector workforce in Lancashire provides vital frontline combat air capabilities to UK and international customers, including providing around-the-clock support to the RAF’s Typhoon fleets, as well as leading the UK’s industrial contribution to the Global Combat Air Programme (GCAP) to deliver a next generation combat aircraft.

Announcing the half-year figures today, Charles Woodburn, BAE Systems chief executive, said: “Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance.

“In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services.

“The breadth and depth of our geographic and product portfolio, together with our trusted track record of delivery, strengthen our confidence in the positive momentum of our business.”

Highlights for the first half include the continuation of concept and assessment work on the Global Combat Air Programme (GCAP), with a further £1bn of funding on the UK assessment phase contract.

BAE Systems also launched Edgewing, a joint venture with its international industry partners in Italy and Japan on GCAP, which will be accountable for the design and development of the next generation combat aircraft under the programme.

The group’s order intake of £13.2bn remained high across all sectors and it closed the period with an order backlog of £75.4bn.