BAE Systems recorded a 10% jump in sales to £30.7bn in 2025, as defence spending around the globe accelerated.

A record year for the UK defence contractor also saw its underlying earnings rise by 12% to £3.3bn.

BAE, reporting its annual results covering the 2025 calendar year, revealed that its order intake was £36.8bn in the year, up from £33.7bn last year, with “all sectors performing well”, it said. The FTSE 100 company’s order backlog also grew by £5.8bn from last year to a record £83.6bn, citing its “diverse geographic footprint” and “multi-domain capabilities” behind the rise.

The group has estimated the deal between the UK Government and Türkiye to acquire 20 Typhoon aircraft, along with an associated weapons package, will be worth £4.6bn to BAE Systems, while agreements in Qatar and Norway also helped the company make “good progress” on its long-term major programmes, it said.

In terms of capital deployment, the BAE board has recommended a final dividend of 22.8p, taking the total dividend for 2025 to 36.3p – an increase of 10% on last year for shareholders.

BAE’s chief executive, Charles Woodburn, said: “Our results highlight another year of strong operational and financial performance, thanks to the outstanding dedication of our employees.

“In a new era of defence spending, driven by escalating security challenges, we're well positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future.

“With a record order backlog and continuing investment in our business to enhance agility, efficiency and capacity, we're confident in our ability to keep delivering growth over the coming years.”

---