The company, which employs around 10,000 people in Lancashire, said 2015 operating profits rose from £1.3bn to £1.5bn.
The solid results come just months after the firm said it was slowing down production of the Eurofighter Typhoon and shedding up to 371 jobs at its sites in Samlesbury and Warton.
The company said it had an order backlog of £36bn, down from £40bn the previous year.
BAE Systems said that throughout 2015, there had been progressive expansion of the capabilities of Typhoon, seen as the world’s most advanced multi-role combat aircraft.The Oman Typhoon and Hawk aircraft programme continued to meet all contractual milestones and was on track for commencement of deliveries in 2017.
Taranis, the stealthy unmanned aircraft, successfully completed a further phase of flight trials, and construction work commenced on BAE’s new £15 million training academy at Samlesbury due to be opened in September.
Chris Boardman, BAE Systems Military Air and Information’s Managing Director, said: “Throughout 2015 we have continued to deliver on all our major programmes and welcome the commitment made in the UK Government’s Strategic Defence and Security Review which included future investment in Typhoon’s capabilities and an extension of the aircraft’s expected service life to 2040.
“Through a series of contracts we are maturing capability enhancements for Typhoon which, along with making the aircraft more competitively priced, will further strengthen prospects for Typhoon in the international market.”