London, Feb 23, 2026, 08:30 GMT — Regular session
BAE Systems plc shares dropped 1.4% to 2,135 pence at the open in London on Monday, pulling back after hitting a 52-week high the previous Friday. The stock had closed the last session at 2,165 pence, LSE.co.uk data showed.
The FTSE 100 defence contractor finds itself grappling with a sudden drop—timing could hardly be worse. Investors are left to untangle whether this reaction is rooted in company-specific developments or simply another bout of market jitters sparked by the latest trade headlines.
BAE said Monday it bought back 83,422 shares for cancellation, shelling out a volume-weighted average price of 2,152.31 pence each as part of its current buyback programme. The deal, handled by Morgan Stanley, was executed on Feb. 20, according to the company.
Buybacks might take some of the edge off supply, but they rarely calm markets rattled by macro risk—particularly with defence stocks already chalking up hefty gains.
BAE posted £30.662 billion in 2025 sales last week, up 10%, and underlying EBIT climbed 12% to £3.322 billion. The order book hit a record £83.6 billion. For 2026, the company is aiming for sales growth of 7% to 9% and sees underlying EBIT increasing by 9% to 11%. A final dividend of 22.8 pence has been proposed, lifting the annual total to 36.3 pence. “In a new era of defence spending … we’re well positioned,” Chief Executive Charles Woodburn said. Investegate
BAE’s shares have more than tripled since Russia’s 2022 invasion of Ukraine, lifted by the sharp rally in European defense names, Reuters reported after earnings.
Monday wasn’t so warm for markets. Wall Street futures dropped alongside the dollar during Asian trading, following some muddled signals over U.S. tariffs. FTSE futures edged down 0.2%, Reuters said. “The tariff landscape is now more uncertain than before,” noted Rodrigo Catril, senior FX strategist at NAB. Reuters
Sterling climbed after the U.S. Supreme Court struck down elements of President Donald Trump’s tariff plan—a move that could complicate things for UK-listed multinationals, particularly when it comes to translating overseas earnings back into pounds.
Defence stocks can turn on a dime. New orders stall if budgets get tangled, buying decisions stall, or global tensions ease. Shares up near all-time highs, investors have little patience for supply hiccups or surprise margin drop-offs.
BAE’s final dividend is set to go ex-dividend on April 23, landing in shareholder accounts on June 4. The company’s half-year figures land next, with results due July 30.
