BAE Systems PLC (LSE:BA.) reaffirmed its 2026 financial guidance on Thursday, citing strong operational performance and rising defense budgets that have bolstered its order book in the first four months of the year.
"We’ve delivered a strong start to 2026, underpinning our full‑year guidance," Chief Executive Charles Woodburn said in a statement. "Our geographic breadth, proven multi‑domain capabilities, and focus on operational excellence and innovation are enabling consistent delivery of critical programmes."
The London-based defense contractor continues to expect full-year sales to grow between 7 percent and 9 percent from 2025's £30.7 billion. It projects underlying earnings per share (EPS) will rise by 9 percent to 11 percent, with free cash flow guided to exceed £1.3 billion.
The company said that security threats continue to grow globally, leading governments to increase defense spending. This has resulted in a near-doubling of BAE's order backlog since Russia's invasion of Ukraine in 2022, according to reports. The company's stock has risen approximately 300 percent over the same period.
New Orders Drive Momentum
BAE detailed a series of significant new orders secured in the year to date. These include a c.£2.5 billion contract to support Türkiye’s Eurofighter Typhoon aircraft and c.£1.1 billion in orders for its MBDA missile systems joint venture, primarily for air defense systems for European customers.
Its U.S.-based Platforms & Services division won a contract worth over $200 million for ARCHER artillery systems and a c.$180 million contract for TRIDON Mk2 anti-aircraft systems for the Swedish Army.
The guidance confirmation signals management's confidence in continued demand across its air, space, and naval divisions. Investors will look to the company's half-year results, scheduled for July 30, 2026, for further details on program execution and margin performance.
This article is for informational purposes only and does not constitute investment advice.
