BAE Systems raises 2026 guidance

BAE Systems PLC reported strong first-half 2026 results, with sales up 9% to £15.8 billion, underlying EBIT up 11% to £1.7 billion, and free cash flow of £1.8 billion. The company raised its full-year guidance across all key financial measures, including sales growth of 8-10%, underlying EBIT growth of 10-12%, and EPS growth of 11-13%. It also increased its interim dividend by 11% to 15p per share. Key contract wins included a £5.9 billion Dreadnought submarine contract, over £5 billion in Global Combat Air Programme contracts, and a framework agreement with the US Department of War to quadruple THAAD seeker production. CEO Charles Woodburn cited sustained increases in defence budgets amid a volatile global threat picture.