BAE Systems backs 2026 guidance after 'strong' showing so far
BAE Systems PLC on Thursday maintained its yearly guidance with its outlook aided by ‘increased defence spending’.
The London-based defence contractor, in a trading update ahead of an annual general meeting on Thursday, said it has seen a ‘strong start to 2026’.
‘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,’ Chief Executive Charles Woodburn said.
BAE Systems backed its view for 2026, still expecting a constant currency sales rise between 7% and 9% from £30.7 billion in 2026, and a 9% to 11% rise in underlying earnings before interest and tax from £3.3 billion. Underlying earnings per share are to rise at the same pace, BAE affirmed, from 75.2 pence in 2025.
The company said: ‘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.’
BAE is to announce half-year results on July 30.
Shares traded 3.2% lower at 2,022.50 pence each in London on Thursday morning.
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