BAE Systems Raises Forecasts on Defense Contracts Surge

BAE Systems has raised its full-year earnings and sales forecasts after reporting strong first-half results, with earnings up 13% to £1.55 billion ($2.07 billion) and sales rising 11% to £14.62 billion ($19.52 billion). The company now expects annual earnings growth of 9-11% and sales growth of 8-10%, driven by increased global defense spending and major new U.S. contracts, including an $800 million Air Force support deal and a $1.2 billion missile-tracking satellite project for the U.S. Space Force. BAE is also supported by the UK’s plan to boost defense spending to 2.5% of GDP by 2027 and ongoing talks for Eurofighter Typhoon orders with Turkey. CEO Charles Woodburn credits the company’s diversified global portfolio and strong delivery record for its momentum. BAE’s share price has surged 60% in 2025, reflecting rising investor confidence. The company continues to benefit from growing defense budgets in key markets such as the U.S., UK, and Europe.