BAE Systems hails a ‘sturdy begin’ to the 12 months because it rides wave of defence sending increase

Defence giant BAE Systems hailed a ‘strong start’ to the year as countries ramp up military spending amid global turbulence.

The company, which makes fighter jets, ships, submarines, combat vehicles and munitions, said that it was on track to meet growth targets.

Sales are expected to rise by up to 9 per cent from last year’s £30.7billion, and underlying earnings by as much as 11 per cent from £3.3billion.

Orders at the start of the year included a £2.5billion contract to train pilots in Turkey to fly recently ordered jets, and deals for air defence systems, anti-aircraft systems for Sweden and a US navy ship upgrade. 

It said: ‘Around the world, security threats continue to grow, leading governments to increase defence spending.’

However, BAE shares fell 4.7 per cent, or 97.7p, to 1991.8p. 

On target: BAE Systems , which makes fighter jets, ships, submarines, combat vehicles and munitions, said that it was on track to meet growth targets

Neil Wilson, UK investor strategist at Saxo Bank, said investors ‘had been hoping for a bit more’ than full-year guidance being maintained.

‘Nevertheless, momentum remains strong with management noting increased defence spending,’ he added.

Defence companies such as BAE have seen demand surge since Russia’s full-scale invasion of Ukraine in 2022 prompted a clamour for rearmament.