BAE Systems PLC (LSE:BA.) said it remains on track to meet its full-year 2025 guidance, underpinned by strong operational and financial performance in the second half and supported by a growing order book.
After 10 months, the FTSE 100-listed defence giant reported more than £27 billion of order intake so far this year, up from £13.2 billion at the half-year stage.
This includes a £4 billion contract with Türkiye to supply 20 Typhoon aircraft and related weapons integration, with other notable awards including $3.3 billion in electronic systems, $1.7 billion in US combat vehicle contracts, and £1.1 billion in orders for the MBDA joint venture.
BAE highlighted a supportive market environment, with increased defence spending across NATO, and said it is well positioned to benefit from opportunities across platforms including frigates, drones, electronic warfare, and space systems.
"In the US, the President recently voiced support for the tri-lateral AUKUS programme and momentum has continued to build around the architecture of the Golden Dome air and missile defense initiative, to which our technologies and capabilities are well aligned."
Management is encouraged by recent actions to end the US government shutdown and said that, to date, "we do not see material effects on our US business. If the shutdown persists, delays to contract funding and timing of payments before year end are possible."
BAE expects sales to grow by 8% to 10% this year, with underlying EBIT forecast to rise 9% to 11%. Free cash flow is projected at more than £1.1 billion. Guidance was unchanged from the mid-year update.
Total returns to shareholders are anticipated to reach around £1.5 billion in 2025, comprising dividends and £500 million of share buybacks.