BAE Systems said on Thursday it was on track to meet forecasts for earnings growth of nine per cent to 11 per cent this year, as the Iran war kept orders flowing into Britain's biggest defence contractor.
The company, which makes Typhoon fighter jets, nuclear submarines and warships in Britain, and provides its biggest customer, the US, with space and satellite equipment, combat vehicles, and munitions, said it had had a strong start to 2026.
"Around the world, security threats continue to grow, leading governments to increase defence spending," the company said in its statement.
BAE's order backlog has almost doubled since Russia invaded Ukraine in 2022 and its stock has soared by almost 300 per cent, buoyed by the prospect of more spending by NATO members.
Future orders are expected across the board, BAE said, including in its space systems, missile and air defence systems and drone and counter drone technology businesses.
In its home market of Britain, which has pledged its biggest defence-spending increase since World War Two, a defence investment plan detailing spending priorities has been delayed by months.
(Reporting by Sarah Young; Editing by Kate Holton and Paul Sandle)
