BAE Systems, the UK defense equipment supplier, published its results on Tuesday. The company is posting gains of a few percent after noticeably beating shareholders’ lofty expectations. Valuations have once again reached all-time highs (around £21 per share).
The UK economy appears to be in increasing trouble; however, steadily rising geopolitical tensions are keeping the output of the UK’s industry leaders running at full speed.
Results for fiscal year 2025 under IFRS:
- Annual revenue increased to £28.3 billion, up 8% year on year.
- EPS increased 6% year on year to 68.8 pence.
- The company’s order backlog expanded by £2.7 billion, reaching £63.1 billion.
According to the company’s accounting policy:
- Annual sales rose 10% to £30.6 billion.
During the conference, company representatives highlighted, above all, a strong increase in defense spending in the US and the UK. The company expects progress in platform programs: Eurofighter, MBDA, and CV90.
This supports the company’s valuation and enables optimistic forecasts. Management guided for FCF of $1.3 billion by the end of 2026. Expected sales growth next year is 7–9%, and EPS growth is projected at 9–11%.
The expected dividend is 36.3 pence per share, representing a 10% increase.
The best-performing segment is platforms and services. EBIT in this segment rose 30%, alongside a 17% increase in sales.
The air segment grew 9%, and the maritime segment grew 11%, although the latter also recorded a 3% decline in EBIT margin.
BA.UK (D1)
Source: xStation5
CME Group - the beneficiary of market volatility and geopolitical uncertainty? 📈
United Health Group – The Medicaid decision supports the price
US Open: Wall Street plunges as the Middle East escalation fears rise 📉Casey's will debut in S&P %00
Broadcom Shares Soar on Deals with Google and Anthropic!
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
