Bae Systems, the largest British defence contractor, has recorded a del% increase 12 ofoperating profit annual, higher than expected, at 3,32 billion pounds, with global demand driving the order book at a record level of 83,6 billion pounds.
In the wake of the results the title BAE Systems It also jumped 6%, posting the best performance of the London Stock Exchange's FTSE 100 index, before paring gains to over 3% by mid-session. BAE Systems shares have more than tripled since Russia's invasion of Ukraine in 2022 and are up over 18% since the start of 2026.
The the pan-European Stoxx 600 index is up almost 1% at 927 points, with the defense sector at the top with a rise of even more than 2%, following the results of the British company.
"In a new era of defense spending“Driven by growing security challenges, we are well-positioned to deliver both advanced conventional systems and disruptive technologies needed to protect the nations we serve now and in the future,” said CEO Charles Woodburn.
The company, which last year obtained orders from Türkiye for Typhoon aircraft and from Norway for Type 26 frigates, provides a sales growth of 7-9% and an increase ofoperating profit of 9-11% in 2026, with the latter in line with previous expectations for 2025.
The broader sector is also supported by yesterday's news that Germany is preparing to acquire a minority stake in Knds, the Franco-German manufacturer of Leopard tanks, ahead of its IPO scheduled for this year.
