BAE Systems (LSE:BA) said in an AGM trading update that it has traded well in the first four months of 2026 and remains on track to meet its full-year guidance for 2026, with strong operational and financial performance to date.
The company reiterated the ranges set at its preliminary results on 18 February, expecting sales to rise by 7%–9% on 2025's £30.7bn, underlying EBIT to increase 9%–11% on 2025's £3.3bn and underlying EPS to rise 9%–11% on 2025's 75.2p, with guidance provided on a constant-currency basis using a 2025 GBP:USD rate of 1.32.
BAE added that a five cent move in GBP:USD would impact sales by c.£500m, underlying EBIT by c.£70m and underlying EPS by c.1.4p.
Management said rising defence spending across its markets and alignment of its portfolio to customer priorities underpin medium‑term growth opportunities across space systems, missile and air defences, drones and counter‑drone, electronic warfare, combat aircraft and vehicles, frigates and submarines.
“Our geographic breadth, proven multi‑domain capabilities, and focus on operational excellence and innovation are enabling consistent delivery of critical programmes,” said Chief Executive Charles Woodburn.
Notable awards year‑to‑date include c.£2.5bn for Eurofighter Typhoon training and support for Türkiye; c.£1.1bn of MBDA air‑defence orders; c.$235m incremental Epoch 2 funding and c.$325m under a restricted national space programme in Space & Mission Systems; over $200m for ARCHER and c.$180m for TRIDON Mk2 from Bofors; and a US Navy contract worth over $200m to upgrade USS Iwo Jima systems.
The group said its strong balance sheet allows continued investment, dividends, value‑enhancing M&A and execution of the £1.5bn buyback programme, having repurchased £166m year‑to‑date and completed £930m to date, and the proposed 2025 final dividend of 22.8p will be paid subject to shareholder approval on 4 June.
BAE Systems will report half‑year results for the six months ending 30 June on 30 July.
