The BAE share price dipped slightly earlier this week, with shares falling by 5.36% to £17.59, underperforming wider market declines and remaining approximately 12% below their 52-week high of £19.99. Despite this short-term softness, investor sentiment remains underpinned by a wave of new, substantial defense contracts and improved financial guidance.
Strengthening momentum is evident as the company raised its full-year guidance: underlying earnings (EBIT) are now expected to grow by 9% to 11%, up from an earlier projection of 8% to 10%. This follows a strong first half, where earnings climbed 13% to £1.55 billion, and sales rose 11% to £14.6 billion. In particular, BAE secured £13.2 billion in new orders within this period, pushing its backlog beyond £75 billion.
Among the standout deals, notable wins include a $1.2 billion contract with the U.S. Space Force for missile-tracking satellites, and a £1 billion agreement with the UK government to advance a next-generation fighter jet in partnership with Italy and Japan. Additionally, a fresh Typhoon fighter jet order from Turkey worth roughly £2.8 billion is expected to revitalize production at BAE’s Lancashire facility and preserve key aerospace jobs.
Putting it all together: the near-term dip in share price appears more a reflection of broader market volatility rather than any internal weakness. The company’s robust order book, strategic investments in high-demand technologies like satellite systems, drones, and counter-drone solutions, plus its expanded earnings outlook, provide a powerful base for future growth. Turkey’s Typhoon deal further reinforces BAE’s export strength and long-term order horizons. That said, investors remain mildly cautious as the shares still trade well below earlier highs and volume remains light.
Key highlights:
- Earnings forecast raised: EBIT growth projection increased to 9–11% for the year.
- H1 2025 results: sales climbed 11%, earnings rose 13%.
- Fresh contracts: U.S. Space Force satellite systems, UK/Italy/Japan fighter jet program, Turkish Typhoon order (~£2.8 billion).
- Share price dipped, but backlog and guidance suggest strong upside potential.
In short, while the BAE share price has pulled back recently, the company’s performance and forward orders read like a confident “charge ahead,” and that’s something worth keeping an eye on.
