BAE Systems has reported a significant increase in its order book and raised its financial guidance for 2026, driven by heightened global military spending. The British defence manufacturer anticipates sales growth of 8 to 10 percent this year, up from earlier projections of 7 to 9 percent, alongside an expected underlying profit increase of 10 to 12 percent, compared with the previous forecast of 9 to 11 percent.

The company, which produces fighter jets, artillery, missiles, and nuclear submarines, has benefited from a surge in government defence procurement following recent geopolitical tensions, including the Russian invasion of Ukraine and ongoing conflicts in the Middle East. Chief Executive Charles Woodburn described the current security environment as “highly volatile” and noted sustained budget increases by governments worldwide.

In the United Kingdom, defence spending is planned to grow from 2.3 percent to 3.5 percent of GDP by 2035. However, Woodburn cautioned that the evolving nature of warfare requires corresponding shifts in defence investment. Speaking in an interview last week, he characterized the present period as the most threatening he had witnessed during his career.

During the first half of 2026, BAE Systems secured £16.4 billion in new orders. Highlights included a £2.5 billion contract to provide training, support equipment, and services for Turkey’s recently ordered Typhoon fighter jets, contributing to a record total order backlog of £84 billion. The company also won a seven-year contract to upgrade the U.S. Terminal High Altitude Area Defense (THAAD) interceptor missile system, intended to counter ballistic missile threats.

BAE recorded revenue of £14.6 billion in the first six months, marking an 8 percent rise from the previous year, while pre-tax profit increased by the same margin to £1.3 billion. The firm employs over 110,000 people globally, including approximately 47,000 in the UK. Nearly half of its sales are generated in the United States, with more than a quarter from the UK and around 10 percent from Saudi Arabia, whose air force operates BAE’s Typhoon fighters.

The UK government holds a “golden share” in BAE Systems, allowing it to block any takeover bids on national security grounds. BAE’s shares have risen nearly 20 percent year-to-date, trading at £20.50 per share following a 1.5 percent increase on the latest trading day. In the first half of the year, the company returned £933 million to shareholders, including £251 million through share buybacks.