started · updated
BAE Systems posts strong H1 2026 results as defence spending surge lifts earnings
BAE Systems reported first‑half 2026 sales of £15.77 billion, up 9% year‑on‑year, and underlying EBIT of £1.70 billion, an 11% increase. Underlying earnings per share rose 13% to 38.9 pence and free cash flow reached £1.79 billion. The company secured £16.4 billion of new orders, bringing its order backlog to a record £84 billion at 30 June. On the back of the results, BAE raised its full‑year earnings‑growth guidance to 10‑12% and reiterated its confidence in long‑term growth.
Rolls‑Royce also upgraded its outlook, forecasting full‑year underlying operating profit of £4.7‑£4.9 billion, up from the previous £4‑£4.2 billion range. Underlying operating profit for the six months ended 30 June was £2.53 billion, a 46% rise, with revenue of £11.28 billion. The company lifted its free‑cash‑flow guidance to £3.8‑£4.0 billion.
Both firms attribute the strong performance to higher global defence spending driven by conflicts in Ukraine, the Middle East and elsewhere. BAE CEO Charles Woodburn warned that UK defence spending still falls short of what is required, describing the current security environment as “the most threatening time I’ve seen.”
Entities
Airbus SE · BAE Systems · BAE Systems plc · Charles Woodburn · John Healey · Rolls‑Royce Holdings · Rolls‑Royce Holdings plc · UK Government · US Department of Defense · United Kingdom · United Kingdom Government
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 5 SOURCES] BAE Systems raised its 2026 underlying earnings growth forecast to 10‑12%. www.standard.co.uk · www.cash.ch · www.naval.com.br · dailyguardian.ca · defence-industry.eu
- [● 4 SOURCES] BAE Systems order backlog was £84 billion at the end of June 2026. www.cash.ch · www.naval.com.br · defence-industry.eu · dailyguardian.ca
- [● 6 SOURCES] CEO Charles Woodburn said the global threat environment remains volatile and UK defence spending falls short of what is required. www.standard.co.uk · ca.news.yahoo.com · www.cash.ch · www.naval.com.br · londonlovesbusiness.com · +1 more
- [● 5 SOURCES] Rolls‑Royce underlying operating profit was £2.53 billion in the first half of 2026, up 46% YoY. www.standard.co.uk · ca.news.yahoo.com · londonlovesbusiness.com · www.autojournal.fr · www.investomania.co.uk
- [● 4 SOURCES] BAE Systems underlying EBIT rose 11% to £1.70 billion in the first half of 2026. www.cash.ch · www.naval.com.br · dailyguardian.ca · defence-industry.eu
- [● 5 SOURCES] Rolls‑Royce raised its full‑year underlying operating profit guidance to £4.7‑£4.9 billion for 2026. www.standard.co.uk · ca.news.yahoo.com · londonlovesbusiness.com · www.autojournal.fr · www.investomania.co.uk
- [● 5 SOURCES] BAE Systems underlying earnings before interest and tax (EBIT) rose 11% to £1.70 billion in the first half of 2026. www.standard.co.uk · ca.news.yahoo.com · www.naval.com.br · dailyguardian.ca · defence-industry.eu
- [● 4 SOURCES] BAE Systems secured £16.4 billion of new orders in the first half of 2026. www.cash.ch · www.naval.com.br · dailyguardian.ca · defence-industry.eu
- [● 4 SOURCES] BAE Systems sales increased 9% to £15.77 billion in the first half of 2026. www.naval.com.br · dailyguardian.ca · defence-industry.eu · www.cash.ch
- [○ 1 SOURCE] Airbus delivered 351 commercial aircraft in the first half of 2026, generating €33.2 billion of revenue and adjusted EBIT of €2.73 billion.