Slide 1: 2025 Preliminary Results
2025 Preliminary results 2025 Preliminary Results 18 February 2026 © 2026 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark. baesystems.com
Slide 2: Cautionary statement
2025 Preliminary results Cautionary statement 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
Slide 3: Agenda
2025 Preliminary results 3 Agenda 2025 review & update Charles Woodburn, CEO US update Tom Arseneault President & CEO Inc. Financial review Brad Greve, CFO Wrap-up and Q&A Charles Woodburn, CEO © 2026 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 4: A year in review
2025 Preliminary results 4 2025 Our three key messages today A year 1 Strong operational and financial results in review Charles Woodburn, CEO 2 Well positioned for global defence needs 3 Excellent visibility of long-term growth © 2026 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered tr
Slide 5: 2025 – another strong operational and financial performance
2025 Preliminary results 5 2025 – another strong operational and financial performance Strong operational Orders Underlying EBIT performance £36.8bn £3.3bn 2024: £33.7bn 2024: £3.0bn Strong sales and profit growth Sales Free cash flow Increased capex and R&D to support future growth £30.7bn £2.2bn 2
Slide 6: Our value compounding model in action
2025 Preliminary results 6 Our value compounding model in action Over the last 5 years Sales growth +50% +8% CAGR Investment in organic growth - people, capex, R&D EBIT growth +66% +11% CAGR > margin improvement +100bp +c.20bp/year Shareholder returns EPS growth +73% +12% CAGR High cash generation 1
Slide 7: Global portfolio well positioned to meet current and future threats
2025 Preliminary results 7 Global portfolio well positioned to meet current and future threats US UK Europe Middle East Asia Pacific • Significant increase in US • Defence spending increase • Strong established • Elevated threat • Elevated threat defence budget proposed from 2.3% to positions across
Slide 8: Europe – strongly positioned for increased defence spending
2025 Preliminary results 8 Europe – strongly positioned for increased defence spending European sales in 2025 Equipment and services are £3.6bn +26% year-on-year integral to the defence of 25+ Combat aircraft countries European order intake in 2025 £7.5bn 20% of group Missile and air defence Europea
Slide 9: MBDA: A strongly positioned leader in missiles & missile systems
2025 Preliminary results 9 MBDA: A strongly positioned leader in missiles & missile systems MBDA’s critical role in defence • Delivering European cooperative programmes • Securing sovereign capabilities for our home nations¹ Unique supplier, offering the full missile portfolio • Bringing operational
Slide 10: MBDA: Large and growing business investing for next phase
2025 Preliminary results 10 MBDA: Large and growing business investing for next phase High order intake Strong backlog Growing revenues Investing for tomorrow 2024/25 +150% +37% (CAGR : 8+%) Sites & digitalisation >€13bn per year €44bn €5.8bn Production capacity €4.2bn 2022/23 >€9bn per year €18bn S
Slide 11: US update
2025 Preliminary results 11 US update Tom Arseneault President & CEO Inc. © 2026 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 12: Strong alignment to US priorities in the largest defence market in the world
2025 Preliminary results 12 Strong alignment to US priorities in the largest defence market in the world Space & Golden Dome Munitions Counter-UAS Naval expansion Extensive expertise in key Positioned to support Advances in cost-effective Investments in Kentucky, capabilities and missions that incre
Slide 13: Investing in US capacity and innovation to support future growth
2025 Preliminary results 13 Investing in US capacity and innovation to support future growth Driving growth Since 2020: Capex investments Microelectronics Naval expansion $4bn On pace to triple production capacity 3x Capacity Shiplift increases Jacksonville capacity three-fold 3x Capacity Increased
Slide 14: Investing in technology for today and tomorrow
2025 Preliminary results 14 Investing in technology for today and tomorrow Technology is at the core of our value proposition Technology today Innovating for the future Efficiency through innovation Rapid transition from concepts to reality, Investing in tomorrow to continuously broaden Investing in
Slide 15: Developing the future of defence technology
2025 Preliminary results 15 Developing the future of defence technology – Established expertise and software capability give competitive advantage Understand the operational need Understand the operating environment Agile software capability Trusted, differentiated solutions that work in combat envi
Slide 16: Financial review
2025 Preliminary Results 16 Financial review Brad Greve, CFO © 2026 BAE Systems. Systems. All Rights Rights Reserved. Reserved. BAE SYSTEMS SYSTEMS is is aa registered registered trademark. trademark.
Slide 17: 2025 – a year of strong financial outcomes
2025 Preliminary Results 17 2025 – a year of strong financial outcomes High Sales Earnings Cash Capital Demand Growth Growth Flow Allocation Orders Sales Underlying EBIT Free cash flow Dividend £36.8bn £30.7bn +10% £3,322m +12% £2,158m 36.3p +10% Order backlog Underlying EPS Shareholder returns £84b
Slide 18: Strong order intake across geographies and domains
2025 Preliminary Results 18 Strong order intake across geographies and domains Order intake £36.8bn ES P&S Air Maritime C&I £8.7bn £6.2bn £14.6bn £5.0bn £2.7bn SMS £2.0bn US combat vehicles £2.2bn Typhoon Türkiye £4.2bn Submarines £1.9bn I&S £1.7bn Electronic Combat £1.9bn US Navy support £1.2bn MBD
Slide 19: Sales
2025 Preliminary Results 19 Sales Group By reporting segment £9.3bn £7.5bn £6.8bn £30.7bn £5.0bn +10% £2.4bn constant currency ES P&S Air Maritime C&I Variance: constant currency +10% +8% +17% +9% +11% +2% Variance: reported +8% +5% +15% +9% +10% -1% Notes: 1. Chart above excludes HQ £0.2bn & intra-
Slide 20: Underlying EBIT / Return on Sales
2025 Preliminary Results 20 Underlying EBIT / Return on Sales Group By reporting segment Return on sales 10.8% 15.4% 11.4% 11.9% 6.7% 9.3% £1,162m £1,108m £3,322m £576m +12% £457m constant currency £223m ES P&S Air Maritime C&I Variance: constant currency +12% +12% +30% +10% -3% +15% Variance: repor
Slide 21: Operating business cash flow
2025 Preliminary Results 21 Operating business cash flow Group By reporting segment Cash conversion 115% 29% 82% 82% 26% £1,337m £2,787m £904m -£306m £373m £166m £59m ES P&S Air Maritime C&I Variance -£306m +£536m -£566m -£339m -£63m -£80m Notes: 1. Chart above excludes HQ £(52)m 2. Defined as opera
Slide 22: Net debt (£m, excluding lease liabilities)
2025 Preliminary Results 22 Net debt (£m, excluding lease liabilities) Free cash flow £2,158m 2,787 (3,844) (4,945) (629) 472 (1,529) 31 December Operating business Interest Shareholder Other 31 December 2024 cash flow & tax returns 2025 Notes: 1. Shareholder returns consists of dividends £1,027m &
Slide 23: 2026 Group guidance reinforces our value compounding model
2025 Preliminary Results 23 2026 Group guidance reinforces our value compounding model Guidance based on £1:$1.32 Underlying Underlying Sales Free cash flow EBIT EPS +7% to 9% +9% to 11% +9% to 11% >£1.3bn 2025: £30,662m 2025: £3,322m 2025: 75.2p 2025: £2,158m Underlying finance costs Effective tax
Slide 24: Three-year free cash flow guidance shows continued strong cash generation
2025 Preliminary Results 24 Three-year free cash flow guidance shows continued strong cash generation 2023 2024 2025 2026 2027 2028 2023 - 25: In excess of £6bn £7.3bn 2024 - 26: In excess of £6bn £4.7bn >£1.3bn (prev. in excess of £5.5bn) 2025 - 27: In excess of £5.5bn £2.2bn >£1.3bn 2026 - 28: In
Slide 25: Consistent, value creating capital allocation
2025 Preliminary Results 25 Consistent, value creating capital allocation 2020 - 2025: Investment in our people £1bn+ in education & skills Capex to drive growth Investment in £4bn invested the business R&D increasing Self-funded R&D increased over 70% Dividend M&A Buyback +9% p.a. CAGR c.£6bn inves
Slide 26: Excellent visibility of long-term growth
2025 Preliminary results 26 Excellent visibility of long-term growth c.9x sales Programmes including Value¹ Timeframe F35 – Build, EW & Support c.£30bn+ Typhoon Support c.£25bn+ Pipeline 2035+ £180bn¹ Dreadnought SSN – AUKUS c.£20bn+ c.£15bn+ GCAP c.£20bn+ Backlog Electronic Systems Platforms & Serv
Slide 27: BAE Systems proposition for significant long-term value creation
2025 Preliminary results 27 BAE Systems proposition for significant long-term value creation Established positions in some of the largest and most attractive defence Sustainable and visible revenue growth markets globally Diverse portfolio and multi-domain capabilities Underlying margin progression
Slide 28: Supplementary information
2025 Preliminary results 28 Supplementary information © 2026 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 29: 2025 summary financials
2025 Preliminary Results 29 2025 summary financials Constant Average $ rate: 2025 $1.32, 2024 $1.28 2025 2024 Currency Reported Order intake £36,791m £33,697m Sales £30,662m £28,335m +10% +8% Underlying EBIT1 £3,322m £3,015m +12% +10% Return on Sales 10.8% 10.6% +20bps +20bps Underlying EPS2 75.2p 6
Slide 30: Underlying EPS
2025 Preliminary Results 30 Underlying EPS + 9.3 + 0.1 + 0.3 - 1.9 - 1.1 75.2p 68.5p 31 December FX Underlying Underlying Tax Share 31 December 2024 EBIT finance costs rate buyback 2025 © 2026 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 31: Electronic Systems
2025 Preliminary Results 31 Electronic Systems Business Description 2025 Sales by Business: Financial Performance Electronic Systems, with 22,400¹ Countermeasure & Power & Propulsion Electromagnetic 1% Electronic 2025 2024 employees, comprises the US- and UK-based Electronic Systems Attack 11% Comba
Slide 32: Platforms & Services
2025 Preliminary Results 32 Platforms & Services Business Description 2025 Sales by Business: Financial Performance Platforms & Services, with BAE Systems Weapons 2025 2024 12,100¹ employees and Bofors Systems UK operations in the US, Sweden 6% 4% Sales $6,646m $5,611m Ordnance and UK, manufactures
Slide 33: Air
2025 Preliminary Results 33 Air Business Description 2025 Sales by Business: Financial Performance Air, with 30,600¹ employees, FalconWorks® 2025 2024 comprises the Group’s UK-based FCAS 3% Sales £9,299m £8,519m aircraft build and support 11% activities for European and KSA Underlying EBIT £1,108m £
Slide 34: Maritime
2025 Preliminary Results 34 Maritime Business Description 2025 Sales by Business: Financial Performance Maritime, with 31,900¹ RBSL 2% 2025 2024 employees, comprises the Naval Ships Group’s UK-based maritime and 17% Sales £6,797m £6,187m land activities, including ship Submarines Underlying EBIT £45
Slide 35: Cyber & Intelligence
2025 Preliminary Results 35 Cyber & Intelligence Business Description 2025 Sales by Business: Financial Performance Cyber & Intelligence, with 10,500 Digital 2025 2024 employees, comprises the US- based Intelligence & Security Intelligence Sales $3,161m $3,082m 33% business and UK-headquartered Unde
Slide 36: 2025 summary by reporting segment
2025 Preliminary Results 36 2025 summary by reporting segment USD FX rate of $1.32 (backlog @ $1. 34) Underlying Return Free Order Order Sales EBIT on sales cash flow1 intake backlog £m £m % £m £bn £bn Electronic Systems 7,528 1,162 15.4 1,337 8.7 13.6 Platforms & Services 5,039 576 11.4 166 6.2 15.
Slide 37: 2026 guidance by reporting segment
2025 Preliminary Results 37 2026 guidance by reporting segment Guidance below assumes a £1 : US$1.32 exchange rate 2025 Actual 2026 guidance Sales Return Expected Expected (£m) on sales sales return on sales Electronic Systems 7,528 15.4% Up 6% to 8% c.15% Platforms & Services 5,039 11.4% Up 9% to 1
Slide 38: Summarised balance sheet (£m)
2025 Preliminary Results 38 Summarised balance sheet (£m) 31 December 31 December 2025 2024 Intangible fixed assets 15,245 16,262 Tangible fixed assets 6,835 6,636 Investments 822 906 Working capital (6,499) (6,386) Pension surplus 844 768 Lease liabilities (1,742) (1,817) Tax assets & liabilities 2
Slide 39: Reconciliation to underlying earnings (£m)
2025 Preliminary Results 39 Reconciliation to underlying earnings (£m) 2025 2024 Income Reclass: Income Reclass: statement EAI interest Reclass: statement EAI interest Reclass: (published) & tax other1 “Reported” Underlying (published) & tax other1 “Reported” Underlying Operating Profit / Underlying