ARMS giant BAE Systems made a record profit of more than £3 billion last year as countries boosted their military spending amid the war in Ukraine and Israel's bombardment of Gaza.
Europe’s largest defence contractor said earnings surged by one-sixth compared to 2024, buoyed by “growing threats” to security around the world.
BAE Systems makes weapons ranging across missiles and artillery systems, tanks, planes and warships.
It also makes cybersecurity products and advanced electronics, including for countries’ space agencies, and it is the biggest military contractor to the UK Government.
The company said it secured orders worth £33.7bn last year, taking its backlog to a new record high, amid more demand for its combat vehicles, and improvements to fighter jets and submarine technology.
The company credited the "growing threats" to security around the world for its bumper profits.
In a statement, the company added : “Today, nations are facing increasingly varied and complex threats to security."
Sales in the UK rose by 12% year-on-year to £7.4bn, while in the US, its biggest market geographically, it saw sales surge by 17% to £12.5bn.
It also sold just under £3bn of products to Saudi Arabia, a 10% rise. BAE Systems provides and maintains the kingdom’s fleet of Tornado and Typhoon fighter jets.
Bosses expect profit to rise again this year by as much as 10%, amid renewed pressure on Nato members to spend more on their militaries.
Since taking office, US president Donald Trump (above) has demanded that members of the military alliance pour as much as 5% of their total economic output into defence spending.
Chief executive Charles Woodburn said: “We’re supporting our customers around the world, while shaping our portfolio towards higher growth and strategically important markets.
“Across our business, we’re also investing in our people, facilities and technologies to drive efficiencies, boost capacity and increase our agility to deliver in a rapidly evolving environment.
“Based on the exceptional visibility of our record order backlog and sustainability of our value-compounding business model, we remain confident in the positive momentum of our business into the future.”
