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Bae Systems (BAESY)
OTHER OTC:BAESY
Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.09Last Year’s EPS
1.85Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong operational and financial performance in 2025: record sales, double-digit EBIT growth, robust order intake (GBP 37bn) and an all-time backlog (GBP 84bn), supported by heavy investment in R&D and capacity and a strengthened balance sheet. Key growth engines (P&S, Air, ES and MBDA) demonstrated notable momentum and management provided constructive guidance for 2026 (sales +7% to +9%; EBIT +9% to +11%). Principal risks highlighted were cash-flow timing volatility driven by customer advances, higher expected tax rates, and lower early-stage maritime margins. On balance the positives—in particular high-quality backlog, margin expansion, strong free cash conversion in 2025 and continued strategic investment—outweigh the operational and timing headwinds.Company Guidance
Record Group Sales and Organic Growth
Group sales reached GBP 30.7 billion in 2025, up 10% year-on-year (organic growth ~9%), marking a record year of revenue for the company.
Underlying EBIT and Margin Expansion
Underlying EBIT rose to GBP 3.3 billion, up 12% year-on-year. Group margin expanded to 10.8%, a 20 basis-point improvement in 2025 and ~100 basis points of expansion over the last five years.
Strong Order Intake and Historic Backlog
Order intake was GBP 37 billion with a book-to-bill of 1.2. Order backlog increased to a record GBP 84 billion (~3x annual sales). Including incumbent program positions the company cites ~GBP 260 billion of visibility (~9x annual sales).
High Cash Generation and Strong Balance Sheet
Operating cash flow was GBP 2.8 billion and free cash flow GBP 2.2 billion (above guidance). Net debt fell ~22% to GBP 3.8 billion; net debt to EBITDA (ex-lease) ~0.9x. Moody's upgraded the rating to A3.
Sector-Level Outperformance
Platforms & Services led growth with sales of GBP 5.0 billion (+17%). Maritime grew 11% to GBP 6.8 billion, Air rose 9% to GBP 9.3 billion, Electronic Systems rose 8%, and Cyber & Intelligence contributed (sales +2%). P&S EBIT increased ~30% to GBP 576 million; ES margin reached 15.4%.
MBDA Momentum and Capacity Investment
MBDA order intake accelerated from ~EUR 4 billion/yr pre-2021 to ~EUR 13 billion/yr since 2021. MBDA backlog rose ~150% to EUR 44 billion (7.5x annual revenue), and MBDA revenue is up 37% over four years to EUR 5.8 billion (CAGR ~8%). Significant capacity and production investments underway to fulfill elevated backlog.
Record Investment in R&D, CapEx and U.S. Capacity Expansion
Self-funded R&D and CapEx combined were the highest ever in 2025. Self-funded R&D up substantially (self-funded R&D programs up ~70% since 2020). CapEx was ~GBP 1 billion in 2025 and over GBP 4 billion invested since 2020. The U.S. portfolio invested >USD 4 billion since 2020, workforce up ~14% and footprint expanded by >2 million sq ft.
Disciplined Capital Allocation and Shareholder Returns
Dividend increased 10% for FY2025 (dividends covered ~2x by underlying earnings) and the company has retired ~9% of ordinary shares since 2021. Management targets >GBP 6 billion free cash over 2026-28 (including expected advances unwind) and retains flexibility for M&A and buybacks.
BAESY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
BAESY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 18, 2026 | $109.59 | $114.32 | +4.32% |
Jul 30, 2025 | $96.41 | $94.23 | -2.26% |
Feb 19, 2025 | $66.19 | $66.47 | +0.43% |
Aug 01, 2024 | $64.82 | $63.96 | -1.33% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Bae Systems (BAESY) report earnings?
Bae Systems (BAESY) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Bae Systems (BAESY) earnings time?
Bae Systems (BAESY) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is BAESY EPS forecast?
BAESY EPS forecast for the fiscal quarter 2026 (Q2) is 2.09.