Slide 1: 2025 Half year results
BAE Systems 2025 Half year results 1 2025 Half year results 30 July 2025 baesystems.com © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 2: Cautionary statement
BAE Systems 2025 Half year results 2 CAUTIONARY STATEMENT All statements other than statements of historical fact included in this document, including, without limitation, those regarding the financial condition, results, operations and businesses of BAE Systems plc and its strategy, plans and objec
Slide 3: Agenda
BAE Systems 2025 Half year results 3 Agenda • Half year update Charles Woodburn - CEO • Financial review Brad Greve - CFO • Wrap-up and Q&A Charles Woodburn - CEO © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 4: 2025 - half year review
BAE Systems 2025 Half year results 4 2025 - half year review Charles Woodburn - CEO Our three key messages today 1 Strong operational and financial results 2 Our business is well positioned for the global opportunity Increased confidence in the momentum and duration of 3 our future growth © 2025 BAE
Slide 5: 2025 – half year review
BAE Systems 2025 Half year results 5 2025 – half year review Increased capex Strong operational Strong sales and Disciplined capital and R&D to support performance profit growth allocation future growth Orders Sales Underlying EBIT Free cash flow £13.2bn £14.6bn £1.6bn £(0.4)bn (2024: £15.1bn) (2024
Slide 6: Excellent visibility and duration of growth
BAE Systems 2025 Half year results 6 Excellent visibility and duration of growth >8x sales Programmes including Value¹ Timeframe F35 – Build, EW & Support c.£30bn+ 2035+ Typhoon Support c.£25bn+ 2035+ Pipeline £180bn¹ Dreadnought c.£20bn+ 2035+ SSN - AUKUS c.£15bn+ 2035+ GCAP c.£20bn+ 2035+ Electron
Slide 7: Global portfolio aligned to meet current and future threats
BAE Systems 2025 Half year results 7 Global portfolio aligned to meet current and future threats Bipartisan support for increased US defence Strong established positions across Europe budget remains strong Actively investing to support customers’ Leading market positions in Europe ambitious capabili
Slide 8: US – Strong alignment to the largest defence market in the world
BAE Systems 2025 Half year results 8 US – Strong alignment to the largest defence market in the world US priority areas for defence BAE proven capability Investing to support growth SMS business acquired with key access to DoD Space and Intel space programmes Capabilities aligned to new US Golden Do
Slide 9: Europe - well positioned for increased defence spending
BAE Systems 2025 Half year results 9 Europe - well positioned for increased defence spending Europe’s critical capability gaps BAE proven capability Investing to support growth Increasing Typhoon production rate, GCAP Air and missile defence design & development and MBDA capex expansion Capacity inc
Slide 10: Developing the future of defence technology
BAE Systems 2025 Half year results 10 Developing the future of defence technology Platforms & Cyber & Electronic Systems Air Maritime Services Intelligence © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 11: Leading position in drone and counter drone technology
BAE Systems 2025 Half year results 11 Leading position in drone and counter drone technology Drones Counter drone • 25 years + of investing in • We have range of capabilities to uncrewed and autonomous neutralise drones, from leading- systems gives us significant IP edge electronic warfare to hard-
Slide 12: Financial review
BAE Systems 2025 Half year results 12 Financial review Brad Greve - CFO © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 13: 2025 half year financials
BAE Systems 2025 Half year results 13 2025 half year financials High Sales Earnings Cash Capital Demand Growth Growth Flow Allocation Orders Sales Underlying EBIT Free cash flow Dividend £13.2bn £14.6bn, +11% £1,550m, +13% £(368)m 13.5p Order Backlog Underlying EPS Shareholder returns £75bn 34.7p, +
Slide 14: Order intake
BAE Systems 2025 Half year results 14 Order intake Order intake £13.2bn ES P&S Air Maritime C&I £3.8bn £2.4bn £3.8bn £2.0bn £1.4bn Electronic Combat £1.0bn AMPV/ACV/PIM £0.8bn MBDA £1.4bn Canada £0.6bn I&S £0.9bn SMS £0.9bn Bofors £0.4bn FCAS £1.0bn Australia £0.6bn Digital Intelligence £0.5bn Contr
Slide 15: Sales
BAE Systems 2025 Half year results 15 Sales Group By reporting segment1 £14.6bn £4.3bn £3.6bn +11% £2.5bn £3.2bn (constant currency) £1.2bn ES P&S Air Maritime C&I Variance: Constant Currency +11% +9% +21% +9% +12% +2% Variance: Reported +9% +6% +19% +8% +10% -% 1. Excludes HQ £98m & intra-group eli
Slide 16: Underlying EBIT / Return on Sales
BAE Systems 2025 Half year results 16 Underlying EBIT / Return on Sales Group By reporting segment1 Return on Sales 10.6% 15.0% 11.8% 11.5% 6.8% 8.1% £1,550m £541m £500m +13% £292m (constant currency) £220m £96m ES P&S Air Maritime C&I Variance: Constant Currency +13% +17% +37% +13% -2% -3% Variance
Slide 17: Operating business cash flow
BAE Systems 2025 Half year results 17 Operating business cash flow Group By reporting segment1 Cash conversion2 55% - 86% 43% - 68% - 24% £(8)m £298m £214m -£482m £(23)m £(150)m £(252)m ES P&S Air Maritime C&I Variance -£482m +£114m -£239m -£510m +£97m -£39m 1. Excludes HQ £(95)m © 2025 BAE Systems.
Slide 18: Net debt (£m, excluding lease liabilities)
BAE Systems 2025 Half year results 18 Net debt (£m, excluding lease liabilities) Free cash flow £(368)m (4,945) (5,566) (8) (360) (849) 596 31 December Operating business Interest Shareholder Other2 30 June 2024 cash flow & tax returns1 2025 1. Dividends £622m & share buyback £227m © 2025 BAE System
Slide 19: 2025 Upgraded Group guidance
BAE Systems 2025 Half year results 19 2025 Upgraded Group guidance1,2 Guidance based on £1:$1.28 Underlying Underlying 2025 Free Sales EBIT EPS cash flow +8% to 10% +9% to 11% +8% to 10% >£1.1bn Prev: +7% to 9% Prev: +8% to 10% unchanged unchanged (2024: £28,335m) (2024: £3,015m) (2024: 68.5p) (2024
Slide 20: Three year free cash flow guidance
BAE Systems 2025 Half year results 20 Three year free cash flow guidance1 2023 2024 2025 2026 2027 2023 - 25: In excess of £6bn £2.6bn £2.5bn >£1.1bn 2024 - 26: In excess of £5.5bn £2.5bn >£1.1bn 2025 - 27: In excess of £5.5bn >£1.1bn Three year guidance ranges show high cash generation cadence 1. W
Slide 21: Capital allocation
BAE Systems 2025 Half year results 21 Capital allocation Investment in our people Capex to drive growth Investment in the business R&D increasing Dividend M&A Buyback Balance sheet strength and flexibility – maintain investment grade rating © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a r
Slide 22: BAE Systems positioned for significant long-term value creation
BAE Systems 2025 Half year results 22 BAE Systems positioned for significant long-term value creation Established positions in some of the largest and most Sustainable and visible revenue growth attractive defence markets globally Diverse portfolio and multi-domain capabilities Underlying margin pro
Slide 23: Supplementary Information
BAE Systems 2025 Half year results 23 Supplementary Information © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 24: 2025 half year summary financials
BAE Systems 2025 Half year results 24 2025 half year summary financials Half Year Half Year Constant Average $ rate: June 2025 $1.30, June 2024 $1.26 2025 2024 Currency Reported Order intake £13,171m £15,115m Sales £14,621m £13,399m +11% +9% Underlying EBIT1 £1,550m £1,393m +13% +11% Return on Sales
Slide 25: Underlying EPS
BAE Systems 2025 Half year results 25 Underlying EPS + 4.7 + 0.2 - 0.7 - - 0.5 - 0.4 34.7p 31.4p 30 June FX Underlying Underlying Tax Share 30 June 2024 EBIT finance costs rate buyback 2025 © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 26: Electronic Systems
BAE Systems 2025 Half year results 26 Electronic Systems Business Description Financial Performance Electronic Systems, with 22,600¹ employees, comprises the US- and UK-based Half Year 2025 2024 Electronic Systems and the US-based Space & Mission Systems businesses. The Sales $4,672m $4,279m teams d
Slide 27: Platforms & Services
BAE Systems 2025 Half year results 27 Platforms & Services Business Description Financial Performance Platforms & Services, with 11,800¹ employees and operations in the US, Sweden Half Year 2025 2024 and UK, manufactures and upgrades combat vehicles, weapons and munitions, Sales $3,217m $2,638m and
Slide 28: Air
BAE Systems 2025 Half year results 28 Air Business Description Financial Performance Air, with 29,100¹ employees, comprises the Group’s UK-based air build and Half Year 2025 2024 support activities for European and international markets, US programmes, Sales £4,343m £4,009m development of our Future
Slide 29: Maritime
BAE Systems 2025 Half year results 29 Maritime Business Description Financial Performance Maritime, with 30,800¹ employees, comprises the Group’s UK-based maritime Half Year 2025 2024 and land activities, including ship build and support activities, major submarine Sales £3,233m £2,929m build progra
Slide 30: Cyber & Intelligence
BAE Systems 2025 Half year results 30 Cyber & Intelligence Business Description Financial Performance Cyber & Intelligence, with 10,800¹ employees, comprises the US-based Half Year 2025 2024 Intelligence & Security business and UK-headquartered Digital Intelligence Sales $1,540m $1,496m business, wh
Slide 31: 2025 half year summary by reporting segment
BAE Systems 2025 Half year results 31 2025 half year summary by reporting segment USD FX rate of $1.30 (backlog @ $1. 37) Underlying Return Free Order Order Sales EBIT on Sales cash flow1 intake backlog £m £m % £m £bn £bn Electronic Systems 3,599 541 15.0 298 3.8 12.1 Platforms & Services 2,478 292
Slide 32: Summarised balance sheet (£m)
BAE Systems 2025 Half year results 32 Summarised balance sheet (£m) 30 June 31 December 2025 2024 Intangible fixed assets 15,197 16,262 Tangible fixed assets 6,481 6,636 Investments 718 906 Working capital (5,142) (6,386) Pension surplus 648 768 Lease liabilities (1,707) (1,817) Tax assets & liabili
Slide 33: Reconciliation to underlying earnings (£m)
BAE Systems 2025 Half year results 33 Reconciliation to underlying earnings (£m) Half Year 2025 Half Year 2024 Income Reclass: Income Reclass: Statement EAI interest Reclass: Statement EAI interest Reclass: (published) & tax Other1 “Reported” Underlying (published) & tax Other1 “Reported” Underlying