BAE Systems (GB:BA)
LSE:BA
Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.39Last Year’s EPS
0.35Same Quarter Last Year
Moderate Buy
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong, broad-based financial and operational performance: record sales, double-digit EBIT and EPS growth, a record GBP 84bn backlog, robust cash generation and significant investment in R&D and CapEx to support future growth. Key growth engines include Europe (backlog exposure), MBDA, U.S. munitions/space and Platforms & Services. Challenges flagged were manageable: cash flow timing volatility from customer advances, higher 2026 tax rate, early-stage low margins in maritime programs, and capacity/CAPEX needs for munition ramps. Overall, positives (scale, margin expansion, backlog, cash generation, strategic investments and credible guidance) materially outweigh the contained lowlights, though execution and timing risks will need monitoring.Company Guidance
Record Revenue and Strong Top-Line Growth
Group sales rose 10% to GBP 30.7bn in 2025 (organic growth 9%), driven by across-the-board sector growth (Platforms & Services +17%, Maritime +11%, Air +9%, Electronic Systems +8%). Five-year CAGR in sales ~8% with sales up >50% on a constant currency basis.
Profitability and Margin Expansion
Underlying EBIT increased 12% to GBP 3.3bn; group margin expanded 20 basis points to 10.8%. Over the last 5 years margins have expanded ~100 basis points (approx. 20 bps/year). EBIT growth has outpaced sales (EBIT up >60% over five years).
Record Order Intake and Backlog
Order intake totaled GBP 37bn with a book-to-bill of 1.2. Order backlog reached a record GBP 84bn (≈3x annual sales). Including incumbent positions and pipeline, management cites ~GBP 260bn of opportunity (~9x annual sales).
Strong Cash Generation and Balance Sheet
Operating cash flow was GBP 2.8bn and free cash flow GBP 2.2bn (above guidance). Net debt reduced 22% to GBP 3.8bn; net debt/EBITDA (ex leases) ~0.9x. Moody's upgraded the rating to A3.
Capital Investment and R&D at Record Levels
Combined spending on R&D and CapEx was the highest ever in 2025. Self-funded R&D rose (70% increase since 2020), CapEx ~GBP 1bn in 2025 and >GBP 4bn since 2020, supporting capacity expansion (e.g., shiplift in Jacksonville, microelectronics centre) and production ramps.
Dividend and Shareholder Returns
Dividend increased 10% for full-year 2025; dividends covered ~2x by underlying earnings. Since 2021, share buybacks have retired ~9% of ordinary share count; returned GBP 1.5bn to shareholders in 2025.
MBDA Momentum and European Positioning
MBDA (37.5% stake) order intake jumped from ~EUR 4bn/year to ~EUR 13bn since 2021; backlog EUR 44bn (7.5x annual revenue). MBDA revenue up 37% over 4 years to EUR 5.8bn; 2025 YoY growth ~17%.
U.S. Business Investment and Production Ramps
Since 2020 U.S. portfolio invested >$4bn in capacity and R&D; workforce up ~14% and footprint +2M sq ft. Notable contract wins and ramps include a 7-year THAAD seeker program (4x production over life), APKWS IDIQ up to $1.7bn, and spacecraft selection for a $1.2bn missile warning program.
GB:BA 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
GB:BA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 18, 2026 | 2029.00 p | 2110.00 p | +3.99% |
Jul 30, 2025 | 1807.86 p | 1772.12 p | -1.98% |
Feb 19, 2025 | 1311.17 p | 1319.50 p | +0.64% |
Aug 01, 2024 | 1260.49 p | 1248.83 p | -0.93% |
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 (GB:BA) report earnings?
BAE Systems (GB:BA) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is BAE Systems (GB:BA) earnings time?
BAE Systems (GB:BA) 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 the P/E ratio of BAE Systems stock?
The P/E ratio of BAE Systems is N/A.
What is GB:BA EPS forecast?
GB:BA EPS forecast for the fiscal quarter 2026 (Q2) is 0.39.