British defense conglomerate BAE Systems announced record financial results for 2025, driven by an unprecedented increase in defense spending in Europe and worldwide. The company reported a 12% rise in operating profit and an order backlog exceeding £83 billion. Despite financial success, the firm faces internal tensions due to ongoing strikes by workers demanding higher wages.

Historic Record Order Backlog

The BAE Systems order backlog reached a value of £83.6 billion, ensuring the company stable growth prospects for the coming years in the face of global rearmament.

Strong Profit Growth

Operating profit rose by 12% to £3.32 billion, exceeding market expectations and stimulating gains on stock exchanges in London and Europe.

Conflict with Workforce

Workers at plants in Lancashire continue a wage strike, and the Unite union calls the generated profits immoral in light of the lack of satisfactory pay raises.

Appeal to the British Government

CEO Charles Woodburn is pressing ministers regarding the publication of military spending plans, which is crucial for planning the conglomerate's future investments.

British conglomerate BAE Systems, Europe's largest arms manufacturer, closed 2025 with record results, reflecting a new era of global defense spending. The company's operating profit rose by 12 percent, reaching £3.32 billion, exceeding market analysts' forecasts. The group's revenue increased by 10 percent to £30.66 billion. However, the most spectacular indicator is the record order backlog, which currently stands at £83.6 billion. The main drivers of growth were orders for Eurofighter Typhoon jets, frigates, and armored vehicles. This demand is a direct consequence of the unstable geopolitical situation following Russia's full-scale invasion of Ukraine and NATO countries' efforts to modernize their defense capabilities. The company's CEO, Charles Woodburn, stated that the firm is well-positioned to meet growing security challenges. He also called on the British government to quickly publish its military spending plans, whose delay hampers long-term investment planning. Since Russia's annexation of Crimea in 2014, and especially after 2022, European countries have moved away from a peace dividend policy towards rapid rearmament, radically changing the financial situation of defense contractors. However, global market successes are accompanied by internal difficulties. The Unite trade union described the company's billion-pound profits as "obscene" in the context of rejected wage demands from workers. Protests are ongoing at plants in Lancashire, and union leaders have announced they will continue until a better financial offer is presented. Meanwhile, the capital market reacted enthusiastically—the STOXX 600 index recorded gains led precisely by companies in the defense sector. 2024: 27.87, 2025: 30.66£83.6 billion — value of the company's current order backlog„In a new era of defense spending, driven by escalating security challenges, we are well-positioned to deliver critical solutions.” — Charles Woodburn Operating Profit: 12, Revenue: 10, 2026 Sales Forecast: 8BAE Systems Results Comparison: : → ; : → ; : →

Mentioned People

  • Charles Woodburn — Chief Executive Officer (CEO) of the BAE Systems conglomerate, responsible for strategic management during a period of record orders.
  • Francis Maguire — Reuters agency correspondent covering the company's results conference.