Bae Systems Plc S/Adr (BAESY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to BAE Systems 2025 Full Year Results. I'm Paul Checketts, Director, Investor Relations, and with me I have Charles Woodburn, our Group Chief Executive, Tom Arsenault, Chief Executive Officer of BAE Systems Inc., and Brad Grieve, our Chief Financial Officer. Charles, over to you. Hello, everyone, and thank you for joining us this morning. Before we begin, I want to thank our employees, trade unions, and supply chain partners for the tireless work they do to ensure we deliver on our commitments to our customers. Delivering reliably on our mission to protect those who protect us is vitally important given the increased threats to security around the world. There are three key messages I'd like to leave you with today. First, 2025 was another year of strong performance. We delivered solid growth in revenue, profit, earnings per share, and order intake. And once again, cash flow was high. Second, the breadth of our business across air, land, sea, cyber, and space, and across multiple geographies, puts us in an exceptionally strong position for both current and future opportunities in defense. And third, we are confident in the future growth we can deliver and the duration of that growth. We delivered strong outcomes in 2025. Sales and EBIT both grew at double-digit rates, cash generation was high, and we secured 37 billion pounds of new order intake, demonstrating strong demand for our products. Our order backlog increased to a new record of 84 billion pounds, around three times our annual sales. At the same time as focusing on delivery today, we're preparing for our future. Part of this is investing in research and development and CAPEX, Our collective spending on these in 2025 was our highest ever. These results extend the track record we've built over multiple...