London, Feb 3, 2026, 09:00 GMT — Regular session.
- BAE Systems shares ticked up roughly 1% in early London trading after the company announced another round of buybacks.
- Investors are factoring in a pay dispute that the union and company say could lead to strikes lasting until Feb. 20.
- Attention now shifts to upcoming pay negotiations and the group’s full-year results expected later this month.
BAE Systems shares climbed 1.17% to 1,944.5 pence by 08:45 GMT, recovering from a rough start earlier this week.
This shift is crucial as investors weigh two opposing pressures: ongoing buybacks steadily cutting the share count, and a labor dispute threatening to disrupt production at a critical moment for defence contractors.
A recent filing revealed that BAE repurchased 110,861 shares on Feb. 2 at an average price of 1,930.32 pence. These transactions took place on the London Stock Exchange through Morgan Stanley & Co. International plc and were marked “for cancellation,” indicating the shares will be retired. So far, under the current tranche, the company has bought back 16,185,778 shares at an average of 1,833.10 pence. London South East
Workers at BAE facilities in northwest England are set to strike from Feb. 2 through at least Feb. 20 amid a pay and conditions dispute, according to the Unite union. A BAE spokesperson described the latest offer as “market-leading pay and reward,” highlighting improvements to pay and pensions, and confirmed, “Our production lines remain operational.” Reuters
In Lancashire, the dispute is focused on BAE Systems’ air division sites at Warton and Samlesbury, where the union objects to a 3.6% pay deal imposed last year. Unite general secretary Sharon Graham slammed the company, saying: “BAE Systems should be ashamed of itself.” Unite regional officer Ross Quinn accused the firm of continuing to act “in bad faith.” Lancashire Business View
The stock closed Monday at £19.22, down 2.63%, falling short of the FTSE 100’s 1.15% gain, according to MarketWatch data.
Tuesday’s early gains seemed driven by dip-buying alongside a market still valuing shareholder returns. The average buyback price reported in the filing hovered near current market levels, keeping the program in the spotlight as a short-term floor.
The pay dispute, however, presents the more immediate threat. Should strikes spread beyond the company’s forecasts or persist longer than planned, investors will quickly demand answers on delivery schedules, cost management, and if the “operational” lines remain so once mid-month hits.
Next on the agenda: updates from both the company and the union on their negotiations, plus BAE’s full-year results due Feb. 18 — a date that could bring the labor dispute into clearer focus for investors.
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