BAE Systems announces record profits as firm sites 'growing threats' to security across globe
A global ramp-up in military spending amid wars in Ukraine and Gaza helped push weapons manufacturer BAE Systems make a record profit of just over £3bn last year.
Europe’s largest defence contractor, which has locations in Leeds and Sheffield, said earnings surged by one-sixth compared to 2024, buoyed by “growing threats” to security around the world.
BAE Systems makes weapons ranging across missiles and artillery systems, tanks, planes and warships. It also makes cybersecurity products and advanced electronics, including for countries’ space agencies, and it is the biggest military contractor to the UK Government.
The company said it secured £33.7bn of orders last year, taking its backlog to a new record high, amid more demand for its combat vehicles, and improvements to fighter jets and submarine technology.
“Today, nations are facing increasingly varied and complex threats to security,” the company said on Wednesday.
“These growing threats have reinforced the essential nature of our work and highlighted the need for continued global investment in defence.”
Sales in the UK rose by 12 per cent year-on-year to £7.4bn, while the US, its biggest market geographically, it saw sales surge by 17 per cent to £12.5bn. It also sold just under £3bn of products to Saudi Arabia, a 10 per cent rise.