BAE Systems is set to post bumper profits this week as business booms for defence firms.
Its shares have been on a tear since Russia’s invasion of Ukraine forced Western governments to reassess their security.
Analysts at broker AJ Bell also point to conflict in the Middle East and heightened geopolitical tensions for BAE’s ‘stunning run’.
The shares have trebled since Russian tanks rolled across the Ukrainian border four years ago.
Flying high: BAE Systems is set to post bumper profits as business booms for defence firms
Led by Charles Woodburn, it is now worth £60 billion and is one of the FTSE 100‘s best performers.
In its November update, the firm revealed it had secured £27 billion of new orders, including contracts for Type 26 frigates from Norway and Typhoon aircraft destined for Turkey, another Nato ally.
AJ Bell expects operating profit for the 2025 calendar year to be up a tenth to £3.3 billion and sales to rise a similar amount to £31 billion. The recent US government shutdown may mean money owed for defence work was delayed but this could be more than offset by some big new orders, the broker notes.
The defence contractor hopes to be picked for a £24 million Royal Navy contract for remote-controlled submersible vessels to protect critical underwater pipelines and internet cables, and track hostile submarines.
Its unmanned submarine will undergo final sea trials next year before entering production.
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