An uncertain world has continued to boost BAE Systems prospects with the defence manufacturer reporting an increase of 11% in sales over the last six months.
Orders worth £13.2bn were recorded with the company reporting a backlog of £75.4bn and an operating profice increase of 2%.
Highlights reported to investors of the past six months include the keel laying of HMS Dreadnought, the first of four Dreadnought Class submarines being built for the Royal Navy in Barrow.
Elswhere the company says concept and assessment work on the Global Combat Air Programme (GCAP) continues with BAE receiving a further £1.0bn of funding on the UK assessment phase contract in the first half of the year.
A new £25m artillery factory in Sheffield was opened which is the first to restore critical gun barrel manufacturing capability in the UK and is on track to be operational before the end of the year.
The company also reports making ‘good progress’ against a target to recruit 2,400 graduates and apprentices in the UK this year.
As well as paying shareholders £849m in the first six months of the year, a 5% increase compared to the £812m returned in the first half of 2024, BAE’s board has declared an interim dividend of 13.5p in respect of the first six months of the year, which will be paid on December 3 2025.
Charles Woodburn, BAE Systems chief executive, said: “Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance.
“In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services.
“The breadth and depth of our geographic and product portfolio, together with our trusted track record of delivery, strengthen our confidence in the positive momentum of our business.”
