London, Feb 23, 2026, 08:30 GMT — Regular session
Shares of BAE Systems plc lost 1.4% to 2,135 pence in early trading in London on Monday, after reaching a 52-week high just last Friday. The stock finished the previous session at 2,165 pence, according to data from LSE.co.uk. (London South East)
For the FTSE 100 defence contractor, the drop couldn’t have come at a trickier time. Investors now face the challenge of teasing out whether the move reflects shifts unique to the company, or just fresh nerves rippling through the market after another round of trade headlines.
Earlier on Monday, BAE announced it repurchased 83,422 shares for cancellation as part of its ongoing buyback programme, paying a volume-weighted average of 2,152.31 pence per share. According to the company, the transaction took place on Feb. 20 via Morgan Stanley. (Investegate)
Buybacks can absorb some of the supply, though they tend not to pacify markets gripped by macro risk—especially when defence stocks have already seen significant gains.
BAE turned in 2025 sales of £30.662 billion last week, marking a 10% increase, with underlying EBIT climbing 12% to £3.322 billion. The company’s order book set a new record at £83.6 billion. Looking to 2026, BAE expects sales to rise another 7% to 9%, targeting underlying EBIT growth of 9% to 11%. A final dividend of 22.8 pence was proposed, bringing the full-year payout to 36.3 pence. Chief Executive Charles Woodburn summed it up: “In a new era of defence spending … we’re well positioned.” (Investegate)
BAE has ridden the surge in European defense stocks that’s unfolded since Russia invaded Ukraine in 2022. According to Reuters, its shares have more than tripled during that stretch, the newswire noted after earnings. (Reuters)
Monday brought a chillier setup. Wall Street futures and the dollar both lost ground in Asian hours after mixed messages on U.S. tariffs, while FTSE futures slipped 0.2%, according to Reuters. “The tariff landscape is now more uncertain than before,” said Rodrigo Catril, senior FX strategist at NAB. (Reuters)
Sterling picked up strength after the U.S. Supreme Court knocked out parts of President Donald Trump’s tariff policy—a shift that could muddy things for UK-listed multinationals, especially when converting foreign profits into pounds. (Reuters)
The defence business has a habit of shifting gears fast. Budget wrangling, procurement holdups, even a hint of calmer geopolitics—any of those could slow new orders. And with shares hovering close to records, investors aren’t likely to wait around for missed deliveries or unexpected margin hits.
Looking ahead, BAE’s final dividend goes ex-dividend on April 23, with payment scheduled for June 4. Investors are also eyeing the company’s half-year numbers coming July 30. (Investegate)
