BAE sales hit new record amid new arms race

(Sharecast News) - Weapons maker BAE Systems on Wednesday reported a better-than-expected rise in annual profits after sales soared to a new record as it cashed in on higher government defence spending amid rising geopolitical tensions. The Typhoon fighter jet and warship maker said full-year underlying operating profit jumped 12% to £3.32bn, beating expectations of a 9% - 11% increase, with its order backlog hitting a record £83.6bn.

Sales surged by 10% to £30.66bn as growing threats from Russia and China, combined with a pivot away from Europe by US President Donald Trump forced governments to ramp up spending on military equipment.

BAE guided for a 9% - 10% increase in 2026 profits and sales growth of 7% - 9% from last year's £30.6bn.

Reporting by Frank Prenesti for Sharecast.com