London, Feb 18, 2026, 08:18 GMT — Regular session
- BAE Systems jumped roughly 6% in early London trading, following its annual results and a confident forecast for 2026.
- The defence contractor reported underlying operating profit up 12%, with its order backlog reaching an all-time high.
- Next up for investors: a 09:30 GMT analyst and investor presentation, with details expected on cash, margins, and new orders.
Shares of BAE Systems surged 6.2% to 2,155 pence during early hours in London on Wednesday, leaving the stock just shy of its 52-week high. The move followed the defence group’s annual results release. (Investing.com)
BAE’s 2025 sales climbed 10% to 30.662 billion pounds, with underlying EBIT—its preferred operating profit metric—up 12% at 3.322 billion pounds. Free cash flow, though, dropped to 2.158 billion pounds from last year’s 2.505 billion. Orders came in at 36.8 billion pounds, pushing the order backlog to a record 83.6 billion pounds—enough to lock in revenue for years. For 2026, BAE is guiding for sales growth between 7% and 9%, and underlying EBIT up 9% to 11%. The company bumped its full-year dividend 10% to 36.3 pence and bought back 30 million shares for a total of 502 million pounds. Chief executive Charles Woodburn said he was “confident in our ability to keep delivering growth over the coming years.” (Investegate)
European defence stocks are still riding a wave of higher government outlays after Russia invaded Ukraine, with investors zeroed in on order flow and cash payouts. BAE shares had already more than tripled since early 2022, gaining another 18% this year before Wednesday’s session. That pushed the company’s market value close to 60 billion pounds, according to Reuters data. (Reuters)
BAE disclosed in a separate Tuesday filing that it snapped up 105,814 shares on Feb. 16, paying a volume-weighted average of 2,022.50 pence apiece as part of its ongoing buyback program, with those shares set for cancellation. So far, the second tranche has pulled in a total of 17.3 million shares, according to the company. (TradingView)
BAE announced some boardroom moves this day: non-executive director Stephen Pearce will step down as audit and risk committee chair at the annual meeting on May 7, and plans to retire at the end of November. Chair Cressida Hogg pointed to Angus Cockburn, who’s set to take over Pearce’s committee role, calling him “a valuable addition as the Board continues to support the team in executing their strategy.” (Investegate)
The company locked in April 23 as the ex-dividend date for its final dividend, setting the record date a day later on April 24. Shareholders are due to get paid on June 4. Looking ahead, half-year results are slated for July 30. As for the interim payout, an ex-dividend date could fall on Oct. 22, with payment scheduled for Dec. 2. (Investegate)
Next up for the stock: a risk that defence investors know well. Cash flow tends to jump around, tied to project milestones and customer payments—big contracts can suddenly stall, even if reported earnings don’t blink. Traders keep an eye on currencies too; when the pound strengthens, it chips away at the value of foreign earnings after conversion.
BAE’s scheduled analyst and investor presentation kicks off at 09:30 GMT, with a live Q&A to follow. Investors will be watching for updates on cash conversion, margin trends, and any clues on whether new orders will continue to outstrip deliveries heading into the next quarter. (research-tree.com)
