BAE Systems reveal record profits - this is what Gaza and Donald Trump have to do with it

Europe’s largest defence contractor, which employs 340 people at its Washington munitions and forging site, said earnings surged by one-sixth compared to 2023, 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 £33.7 billion of orders 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.

“Today, nations are facing increasingly varied and complex threats to security,” the company said on Wednesday. These growing threats have reinforced the essential nature of our work and highlighted the need for continued global investment in defence.”

Sales in the UK rose by 12 per cent year-on-year to £7.4 billion, while the US, its biggest market geographically, it saw sales surge by 17 per cent to £12.5 billion. It also sold just under £3 billion of products to Saudi Arabia, a 10 per cent 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 per cent, amid renewed pressure on Nato members to spend more on their militaries. Since taking office, US president Donald Trump has demanded that members of the military alliance pour as much as 5 per cent of their total economic output into defence spending.

Cybersecurity

BAE Systems also said it has picked out cybersecurity “as a key focus area for business growth”, and said it is seeing an “increase in demand driven by persistent global security challenges”.

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.”