BAE Systems Reports 10% Sales Rise to $21.64B, Shares Up 3.6%
BAE Systems reported full-year revenue of $21.64 billion, up 10% year-on-year, and earnings per share of $0.52, narrowly missing estimates. Shares jumped 3.6% on the day of the release, while order backlog rose to £83.6 billion and management forecasts 7%-9% sales growth for 2026.
1. Earnings and Share Reaction
BAE Systems reported full-year earnings per share of $0.52, narrowly missing the $0.54 estimate, and its share price rose 3.6% on the day of the announcement, reflecting investor confidence in its long-term prospects.
2. Revenue Growth and Key Contracts
The company delivered $21.64 billion in revenue, a 10% increase from the prior year, driven by substantial defense contracts for military aircraft, weapons and munitions with clients in Norway, the U.S. and Turkey.
3. Financial Metrics and Outlook
BAE Systems holds a P/E ratio of 31.54 and a debt-to-equity ratio of 0.87, and its order backlog climbed to £83.6 billion, supporting management’s forecast of 7%-9% sales growth in 2026 and cumulative free cash flow exceeding £6 billion through 2028.