UK's BAE Systems posts better-than-expected 12% profit rise

Core Viewpoint - BAE Systems reported a 12% increase in full-year operating profit, reaching 3.32 billion pounds ($4.5 billion), driven by a record order backlog of 83.6 billion pounds due to rising global demand for defense solutions [1]. Financial Performance - The company achieved a 12% rise in operating profit compared to the previous year [1]. - The order backlog increased to a record 83.6 billion pounds, indicating strong demand in the defense sector [1]. - BAE Systems forecasts a sales increase of 7-9% and an operating profit increase of 9-11% for 2026, aligning with previous expectations for 2025 [1]. Market Position - BAE's shares have more than tripled since the onset of the Russia-Ukraine conflict in 2022, reflecting heightened investor interest in defense stocks [1]. - The stock price has risen 18% since the beginning of 2026, reaching 2,020 pence, which gives the company a market capitalization of approximately 60 billion pounds [1]. Strategic Outlook - The CEO emphasized the company's readiness to provide advanced conventional systems and disruptive technologies to address escalating security challenges [1].