BAE Systems raised its 2026 outlook on Thursday, continuing to benefit from strong demand as its biggest customer, the United States, ramps up munitions output and Britain pushes ahead with submarine and fighter jet programmes.
"In this heightened threat environment, our products and services remain in high demand," said BAE CEO Charles Woodburn.
BAE, which provides the United States with combat vehicles, electronic warfare systems and space capabilities, has seen its order book almost double since Russia invaded Ukraine in 2022.
Many western countries have pledged to lift their military budgets, while the Iran war means U.S. and Middle East customers are also looking at new orders.
BAE's shares, which have rocketed 260% over the last five years and 18% in the year to date, were up 1% in early deals after it said it expected underlying operating profit to rise by 10% to 12% this year, up from its previous 9% to 11% forecast.
