BAE Systems has reported that its performance in the second half of fiscal 2025 is meeting expectations, driven by positive momentum in order intake.
The company has received more than £27bn ($35bn) in orders so far this year.
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Key contract awards in the second half include around £4bn for the construction of 20 Typhoon aircraft and weapons integration for Türkiye, where first delivery is set for 2030.
In Electronic Systems, BAE Systems secured around $3.3bn in orders, comprising incremental funding for Space & Mission Systems and various electronics programmes, as well as new contracts for the Advanced Precision Kill Weapon System (APKWS) and Multifunctional Information Distribution System Joint Tactical Radio Systems.
The group also received approximately $1.7bn in funding supporting US combat vehicle production across ongoing AMPV, Bradley and M109 programmes.
Additionally, it secured almost £1.1bn of MBDA orders for domestic and export contracts, and £900m to continue work on Dreadnought programme design and build activities.
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By GlobalDataBAE Systems also expected the recent agreement between the Norwegian and UK governments regarding at least five Type 26 anti-submarine frigates, to result in a significant order after contractual arrangements conclude post-2025.
Across its operations, BAE Systems noted that its portfolio aligns with key national defence strategies of customers while recent spending increases across NATO create a supportive environment for medium-term growth opportunities.
Areas highlighted include space systems, missile and air defence systems, electronic warfare platforms, combat aircraft and vehicles, frigates, submarines, and unmanned systems.
Looking ahead, the company anticipated sales growth of 8 to 10%, underlying earnings before interest and taxes (EBIT) up by 9 to 11%.
Underlying earnings per share (EPS) are projected to rise by 8 to 10%.
BAE Systems chief executive Charles Woodburn said: “We continue to deliver strong financial and operational performance in the second half of the year, underpinning the full-year guidance we upgraded in July.
“The recent agreement with Türkiye for Typhoon aircraft and announcement by Norway in respect of Type 26 frigates demonstrate sustained global demand for our leading defence capabilities.
“With a strong order backlog, established positions on key programmes and continued investment to support our future growth, we’re confident in the outlook for our business.”
