UK's BAE Systems confident on growth as security threats rise

LONDON, ⁠May 7 (Reuters) - BAE ​Systems said on Thursday it was on track to meet ​forecasts ‌for earnings growth of 9% to 11% this year, ⁠as the Iran war kept ⁠orders flowing into Britain's ​biggest defence contractor.

The company, which makes Typhoon fighter jets, nuclear submarines and warships in Britain, and provides ​its ‌biggest customer, the United States, with space and satellite equipment, combat vehicles, and munitions, said it had had a strong start to 2026.

"Around ​the world, security threats continue to grow, leading governments ‌to increase defence spending," the company said in its statement.

BAE's order backlog ‌has almost doubled since Russia invaded Ukraine in 2022 and its stock has soared by almost ​300%, buoyed by the prospect of more spending by NATO ‌members.

Future orders are expected across the board, BAE said, including in its space systems, missile and air ⁠defence ⁠systems and drone and counter drone ‌technology businesses.

In its home market of Britain, which has ​pledged ​its biggest defence-spending increase since World War ‌Two, a defence investment plan detailing spending priorities has been delayed by months.

BAE Systems