BAE Systems boss thanks 12,000 Lancashire employees as defence giant enjoys "significant success"
BAE System’s 12,000 Lancashire staff have been thanked for their “outstanding dedication” as the company revealed its 2025 full year results.
The company, which has major sites in Warton and Samlesbury, said it has experienced significant success across its combat air business in the region.
The Company’s Air sector workforce in Lancashire provides vital frontline combat air capabilities to UK and international customers, making an important contribution to safeguarding national defence and security. This includes providing support to the Royal Air Force Typhoon fleets, as well as leading the UK’s industrial contribution to the Global Combat Air Programme (GCAP) to deliver a next generation combat aircraft.
Charles Woodburn, BAE Systems Chief Executive, said: “Our results highlight another year of strong operational and financial performance, thanks to the outstanding dedication of our employees.
“In a new era of defence spending, driven by escalating security challenges, we’re well positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future. With a record order backlog and continuing investment in our business to enhance agility, efficiency and capacity, we’re confident in our ability to keep delivering growth over the coming years.”
Results in brief
For the year ended December 31, 2025:
- Sales increased 10 per cent to a record £30.7bn, with growth in all of sectors. Organic growth was 9 per cent.
- Underlying EBIT increased by 12 per cent with a 20bps increase in return on sales from 10.6 per cent to 10.8 per cent.
- Underlying EPS increased by 12 per cent.
- Free cash flow was strong at £2,158m. Significant customer advances were received late in the year, capital expenditure remained close to record levels at c.£1bn and research and development (R&D) spend increased.
- The order backlog grew by £5.8bn to a record £83.6bn. Order intake was strong at £36.8bn, with all sectors performing well, reflecting the continued relevance of our diverse geographic footprint and multi-domain capabilities.
In 2025, BAE Systems’ Air sector:
- Secured Typhoon production into the next decade following an agreement between The Republic of Turkiye and UK Government to provide 20 Typhoon aircraft and an associated weapons and integration package;
- Confirmed further orders totalling £0.8bn for major units on additional Typhoon aircraft for Germany and Italy;
- Launched Edgewing, a new joint venture with international industry partners in Italy and Japan, which will be held accountable for the design and development of the next generation combat aircraft under GCAP;
- Continued to make progress on the manufacture of the UK’s combat air flying demonstrator, with two thirds of its structural weight now in manufacturing;
- Secured a contract worth more than £450m to supply the Royal Air Force with the cutting-edge ECRS Mk2 radar;
- Advanced drone capabilities across multiple areas, including the launch of a precision munition from a modified Malloy T-150 multi-rotor Uncrewed Air System (UAS) which successfully destroyed both air and ground targets during trials in the US, marking a major step forward in the development of a low-cost strike and counter UAS option for frontline troops*;
- Supplied its Malloy T-150 UAS to the Royal Navy to transport vital supplies between UK Carrier Strike Group ships for the first time during its deployment to the Indo-Pacific;
- Recruited 1,225 people to work at the Company’s Warton and Samlesbury sites; and
- Invested more than £460,000 in community projects across Lancashire.
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