Higher defence spending provides boost for Rolls-Royce and BAE Systems
Higher defence spending amid global conflicts is delivering a boost to Rolls-Royce and BAE Systems as the FTSE 100 stalwarts upgraded their annual outlooks after solid half-year figures.
By Greg Wright
Published 30th Jul 2026, 11:31 GMT
Engine maker Rolls surged to the top of the FTSE 100 Index as shares jumped 6% in morning trading on Thursday thanks to a solid profit guidance upgrade. It now expects to post underlying operating profits of £4.7 billion to £4.9 billion for 2026, up from previous guidance for between £4 billion and £4.2 billion.
Defence contractor BAE Systems hiked its profit outlook, with a 10% to 12% rise in underlying earnings expected for 2026, up from the 9% to 11% previously forecast. Underlying earnings rose 11% in the half-year on sales 9% higher, while pre-tax profits rose to £1.28 billion from £1.19 billion a year ago.