

BAE Systems Rallies on Record Defence Backlog

BAE Systems saw its share price climb more than 5% following the release of its 2025 full-year results, reflecting growing investor confidence in Europe’s long-term defence spending cycle. Sales rose 10% to £30.7bn, while operating profit increased 9% to £2.93bn, reinforcing the company’s industrial scale and operational resilience. At the core of the investment case is a record £83.6bn backlog, providing multi-year revenue visibility anchored in government contracts. Major agreements across the UK, Norway and the United States have strengthened this pipeline, positioning BAE at the centre of expanding air, naval, cyber and space defence capabilities. Unlike cyclical consumer or technology stocks, BAE operates within structured national procurement systems. Multi-year contracts, recurring maintenance services and geographic diversification across the UK, US and allied markets contribute to more predictable earnings and lower volatility. With defence budgets embedded into national fiscal plans and NATO members increasing military expenditure, the sector appears to be transitioning from reactive crisis-driven spending to a sustained structural rebuild. Forward guidance projecting 7–9% sales growth in 2026. Read more on how Europe’s expanding defence budgets, contract backlog strength and competitive dynamics could shape the next phase of BAE Systems’ share price performance.

Learn more

Publication date:

2026-02-20 08:58:24 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.