REG - BAE SYSTEMS PLC - Trading Statement

BAE SystemsAnnouncement

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RNS Number : 3145D  BAE SYSTEMS PLC  07 May 2026

BAE Systems - Trading update

7 May 2026

BAE Systems is providing the following market update ahead of its Annual
General Meeting today.

 

Highlights:

·    Strong operational and financial performance so far in 2026.

·    Full year guidance maintained.

·    Increased defence spending across all our key markets.

·    Well positioned for growth over the medium term.

 

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."

 

Market update

The Group has traded well in the first four months of the year, delivering
strong operational and financial performance. We remain on track to achieve
our full year guidance.

 

Around the world, security threats continue to grow, leading governments to
increase defence spending. Across our markets, sustained investment and
deliberate positioning have resulted in a proven portfolio of capabilities
that aligns with customer priorities and evolving future challenges.

 

The combination of increased defence spending with strong portfolio alignment,
provides a supportive backdrop for growth over the medium term. We expect
significant opportunities across our 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.

 

Guidance

We expect strong growth in sales, EBIT and EPS in 2026, alongside solid cash
generation. Full-year guidance remains unchanged from the preliminary results
announcement published on 18 February 2026.

 ·    Sales                       +7% to +9% (2025: £30.7bn)
 ·    Underlying EBIT             +9% to +11% (2025: £3.3bn)
 ·    Underlying EPS              +9% to +11% (2025: 75.2p)
 ·    Free cash flow in 2026      >£1.3bn

 

Guidance is provided on a constant currency basis, using the average GBP:USD
exchange rate in 2025 of 1.32. As a guide, a 5 cent movement in the GBP:USD
exchange rate impacts sales by c.£500m, underlying EBIT by c.£70m and
underlying EPS by c.1.4p.

 

 

Order intake

Notable awards received in the year to date include:

·    Air - c.£2.5bn contract to provide training and support equipment
and services for the Republic of Türkiye's recently ordered Eurofighter
Typhoon aircraft.

·    Air - c.£1.1bn of MBDA orders primarily from securing air defence
orders, Aster, VL MICA and Mistral, with European customers.

·    Electronic Systems - the Space & Mission Systems business
received c.$235m in incremental funding under the $1.2bn Epoch 2 missile
warning and tracking satellite programme and a c.$325m order under a
restricted national space programme.

·    Platforms & Services - Bofors received a contract valued at over
$200m for ARCHER artillery systems and a c.$180m contract for TRIDON Mk2
anti-aircraft systems for the Swedish Army for engaging a range of aerial
threats including drones.

·    Platforms & Services - Maritime Solutions received a US Navy
contract worth over $200m to maintain and upgrade the USS Iwo Jima shipboard
systems to accommodate Joint Strike Fighter flight operations.

 

Balance sheet and capital allocation

Our strong financial position enables us to implement all parts of our capital
allocation policy. We continue to prioritise investment in our business to
support organic growth, pay dividends to our shareholders, explore value
enhancing acquisition opportunities and execute our share buyback programme.

 

The 2025 final dividend of 22.8 pence per share will be paid, subject to
shareholder approval, on 4 June 2026.

 

As at 6 May, we have repurchased £166m of shares in the year and have now
completed £930m of the three-year £1.5bn share buyback programme, which
commenced in July 2024.

 

Half year results

BAE Systems will announce its results for the six months ending 30 June 2026
on 30 July 2026.

 

For further information please contact:

 Investors                                                           Media
 Paul Checketts                                                      Kristina Anderson

 Investor Relations Director                                         Director, Media Relations

 Telephone: +44 (0) 3300 46 6802                                     Telephone: +44 (0) 7540 628673

 Email: investors@baesystems.com (mailto:investors@baesystems.com)   Email: Kristina.anderson@baesystems.com
                                                                     (mailto:Kristina.anderson@baesystems.com)

 

Legal Entity Identifier (LEI): 8SVCSVKSGDWMW2QHOH83

 

Cautionary statement

All statements other than statements of historical fact included in this
document, including, without limitation, those regarding the financial
condition, results, operations and businesses of BAE Systems plc and its
strategy, plans and objectives and the markets and economies in which it
operates, are forward-looking statements. Such forward-looking statements,
which reflect management's assumptions made on the basis of information
available to it at this time, appear in a number of places throughout this
document and include statements regarding the intentions, beliefs or current
expectations of BAE Systems plc concerning, among other things, its results in
relation to operations, financial condition, liquidity, prospects, growth,
commitments and targets, strategies and the industry in which it operates.
Forward-looking statements can be made in writing but may also be made
verbally by directors, officers, and employees of BAE Systems plc (including
during presentations) in connection with this document. By their nature,
forward-looking statements involve known and unknown risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future.

Forward-looking statements are not guarantees of future performance and the
actual results of operations, financial condition and liquidity of BAE Systems
plc, the development of the industry in which it operates and the ability of
BAE Systems plc to meet its commitments and targets may differ materially from
those made in or suggested by the forward-looking statements contained in this
document. In addition, even if results of operations, financial condition and
liquidity of BAE Systems plc, the development of the industry in which it
operates and/or performance against commitments and targets are consistent
with the forward-looking statements contained in this document, those results,
developments or performance may not be indicative of results, developments or
performance in subsequent periods.

These forward-looking statements speak only as of the date of this document.
Subject to the requirements of the Disclosure Guidance and Transparency Rules,
the Market Abuse Regulation or applicable law, BAE Systems plc explicitly
disclaims any intention or obligation or undertaking publicly to release the
result of any revisions to any forward-looking statements in this document
that may occur due to any change in its expectations or to reflect events or
circumstances after the date of it. All subsequent written and oral
forward-looking statements attributable to either BAE Systems plc or to
persons acting on its behalf are expressly qualified in their entirety by the
cautionary statements referred to herein and contained elsewhere in this
document.

BAE Systems plc and its directors accept no liability to third parties in
respect of this document save as would arise under English law. Accordingly,
any liability to a person who has demonstrated reliance on any untrue or
misleading statement or omission shall be determined in accordance with
Schedule 10A of the Financial Services and Markets Act 2000. It should be
noted that Schedule 10A and Section 463 of the Companies Act 2006 contain
limits on the liability of the directors of BAE Systems plc so that their
liability is solely to BAE Systems plc.

 

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