UK’s BAE Systems upgrades 2026 outlook as defence orders soar

BAE Systems' share price has soared 260% over the past five years. (EPA Images pic)LONDON: BAE Systems upgraded its 2026 outlook after governments lifted defence orders amid a heightened global threat level. The company benefited as the US quadrupled munitions production and Britain pushed ahead with submarine and fighter jet programmes.BAE, Britain's biggest military supplier, said on Thursday it now expected underlying operating profit to rise between 10% and 12% this year, up from the 9% to 11% range it had previously guided."The global threat picture remains highly volatile and governments are responding with sustained increases in their defence budgets," BAE CEO Charles Woodburn said in a statement.For the first six months of the year, the company posted operating profit of £1.70 billion pounds, beating an analyst consensus of £1.66 billion and up 11% on the year earlier.BAE's order backlog has almost doubled since Russia invaded Ukraine in 2022, buoyed by the prospect of more spending by Nato members, while the Iran war this year means its US and Middle East customers are also looking at new orders.The company highlighted its move to add an anti-drone weapon, the APKWS, to British Typhoon fighter jets, better protecting them in the Middle East after the start of the Iran war.BAE's share price has soared 260% over the last five years as Western nations have said they are rearming.