The UK’s biggest defence contractor said earnings surged by one-sixth compared to 2024, buoyed by “growing threats” to security around the world
BAE Systems reported a massive spike in profits due to intensifying conflicts, raking in just over £3bn last year—a record-breaking profit.
The UK-based arms giant has cited the wars in Ukraine and Gaza as factors fuelling a surge in military expenditure globally, with its earnings jumping by one-sixth compared to 2024. Amid a climate concerned with “growing threats” to global security, BAE Systems has seen heightened demand for its wide range of weapons including missiles, artillery, tanks, aircraft, and warships.
The firm’s expansive portfolio further extends into cybersecurity and high-tech electronics, targeting space agencies among others, while also standing as the principal military supplier to the British Government. Last year, BAE Systems secured orders worth £33.7bn, propelling its order backlog to an all-time high due to soaring requests for their armoured fighting vehicles and enhancements in fighter jet and submarine technologies.
On Wednesday, the company stated: “Today, nations are facing increasingly varied and complex threats to security,” going on to articulate the pivotal nature of their work and underlining the ongoing imperative for robust global defence investment.
Sales within UK borders climbed by 12% on a year-on-year basis to £7.4bn. Meanwhile, across the Atlantic in the US—their largest market—revenue swelled by 17% to £12.5bn.
Saudi Arabia also featured prominently in their books, importing nearly £3bn worth of hardware, marking a 10% increase and sustaining its air force with both Tornado and Typhoon fighters courtesy of BAE Systems.
Looking ahead, company brass are bullish about future financial health, predicting up to a 10% profit boost this year, as Nato members face mounting calls to expand their military budgets.
US President Donald Trump has been cranking up the pressure since his inauguration, insisting that nations in the military pact should ramp up their defence spending to as much as 5% of their gross domestic product. Echoing this call for heightened security, British multinational defence company BAE Systems has singled out cybersecurity as a pivotal area ripe for expansion, acknowledging a surge in demand spurred on by enduring global security challenges.
Chief Executive Charles Woodburn voiced the company’s stance: “We’re supporting our customers around the world, while shaping our portfolio towards higher growth and strategically important markets.”
He stressed the organisation’s proactive measures saying, “Across our business, we’re also investing in our people, facilities and technologies to drive efficiencies, boost capacity and increase our agility to deliver in a rapidly evolving environment.
“Based on the exceptional visibility of our record order backlog and sustainability of our value-compounding business model, we remain confident in the positive momentum of our business into the future.”
