BAE Systems’ results for 2025 underline strong global demand for defence products, as the company’s backlog grew on strong orders.
“Defence spending is increasing because of the growing threats to national security in each of our markets,” says BAE chief executive Charles Woodburn, speaking during an earnings call.
“The work we’ve done to invest in and position our business means our existing proven portfolio of capabilities aligns well to customer priorities.”
In 2025, BAE’s sales improved to £30.7 billion ($41.5 billion) from £28.3 billion a year earlier.
This helped the company’s order backlog for the 12 months ended 31 December 2025 grow to a record £84 billion, of which £32.6 billion was contributed by the company’s Air reporting segment, up from £26.8 billion a year earlier. The segment comprises the company’s role in the Eurofighter Typhoon, munitions joint venture MBDA, Lockheed Martin F-35, and future systems.
The Air segment enjoyed orders of £14.6 billion in 2025, and was the biggest single contributor to the BAE’s overall 2025 order intake of £36.8 billion.
Notable 2025 orders included a £4.2 billion committment from Turkey for 20 Typhoons, as well as contributions from MBDA and BAE’s involvement in the F-35 programme.
BAE’s profitability also improved in 2025, with the company generating earnings before interest and taxes of £3.3 billion, up 10% from a year earlier.
The company sees opportunities globally with rising defence spending globally, notably in the USA, Europe, and the Asia-Pacific.
As for MBDA – a joint venture between Airbus, BAE Systems, and Leonardo – BAE notes that at the end of 2025 its order backlog had grown to €44 billion ($52 billion), compared with €18 billion in 2021.
“With improving momentum in recent years, MBDA is investing to fulfill orders and support customers’ urgent needs,” says Woodburn.
BAE notes the strong order intake at the joint venture. In 2024/2025 orders amounted to €13 billion annually, compared with €4 billion annually in the decade before 2021.
Revenues at the arms maker are also up, coming in at €5.8 billion in 2025, compared with €4.2 billion in 2021.
