BAE Systems boss thanks Washington employees as defence giant enjoys "significant success"
BAE System’s staff in Washington have been thanked for their “outstanding dedication” as the company revealed its 2025 full year results.
Europe’s largest defence contractor, which employs 340 people at its Washington munitions and forging site, said it has enjoyed growth in all sectors, with a record order backlog and sales up by 10 per cent to £30.7bn.
Charles Woodburn, BAE Systems Chief Executive, said: “Our results highlight another year of strong operational and financial performance, thanks to the outstanding dedication of our employees.
“In a new era of defence spending, driven by escalating security challenges, we’re well positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future. With a record order backlog and continuing investment in our business to enhance agility, efficiency and capacity, we’re confident in our ability to keep delivering growth over the coming years.”
Results in brief
For the year ended December 31, 2025:
- Sales increased 10 per cent to a record £30.7bn, with growth in all of sectors. Organic growth was 9 per cent.
- Underlying EBIT increased by 12 per cent with a 20bps increase in return on sales from 10.6 per cent to 10.8 per cent.
- Underlying EPS increased by 12 per cent.
- Free cash flow was strong at £2,158m. Significant customer advances were received late in the year, capital expenditure remained close to record levels at c.£1bn and research and development (R&D) spend increased.
- The order backlog grew by £5.8bn to a record £83.6bn. Order intake was strong at £36.8bn, with all sectors performing well, reflecting the continued relevance of our diverse geographic footprint and multi-domain capabilities.
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