BAE Systems (LON:BA) Releases Earnings Results

BAE Systems (LON:BA) posted its quarterly earnings data on Wednesday. The company reported GBX 75.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. BAE Systems had a net margin of 7.49% and a return on equity of 16.87%.

BAE Systems Trading Up 4.0%

Shares of LON:BA traded up GBX 81 during trading on Thursday, reaching GBX 2,110. The stock had a trading volume of 8,654,132 shares. The company has a quick ratio of 0.91, a current ratio of 1.03 and a debt-to-equity ratio of 94.02. The stock has a market cap of £65.32 billion, a P/E ratio of 36.20, a PEG ratio of 3.33 and a beta of 0.33. The business has a fifty day moving average price of GBX 1,883.22 and a 200-day moving average price of GBX 1,851.23. BAE Systems has a fifty-two week low of GBX 1,012.50 and a fifty-two week high of GBX 1,415.25.

Key Stories Impacting BAE Systems

Here are the key news stories impacting BAE Systems this week:

• Positive Sentiment: Company reports record FY25 results and growth — management flagged stronger sales and profits for the year, reinforcing the narrative of a sustained defence spending tailwind. Read More.
• Positive Sentiment: Record order backlog — BAE said its backlog has hit a record (~£84bn), underpinning multi‑year revenue visibility as global defence budgets rise. This backlog is the main driver behind upgrades in investor expectations. Read More.
• Positive Sentiment: Strong programme pipeline — BAE says its Eurofighter production pipeline is full up until the first GCAP assembly, signalling near‑term workload and contract continuity on a high‑margin platform. Read More.
• Positive Sentiment: Dividend increased — FY25 results included a higher dividend, a direct shareholder return that supports sentiment and may attract income investors. Read More.
• Positive Sentiment: Insider buying — small purchases by insiders (including the CEO) signal confidence from management, though sizes are modest. Read More.
• Neutral Sentiment: Product trials continue — BAE Australia is conducting ATLAS CCV trials (development progress but not yet revenue material). Read More.
• Neutral Sentiment: Management lobbying for clarity — BAE’s boss urged ministers to publish the delayed Defence Investment Plan; publication would be a catalyst, but timing remains uncertain. Read More.
• Negative Sentiment: Labour disruption — U.K. workers have picketed sites and some unions are striking, creating near‑term operational and cost risks that could temper margin upside. Read More. Read More.

Analyst Upgrades and Downgrades

BA has been the subject of a number of research reports. Jefferies Financial Group downgraded BAE Systems to a “hold” rating and lifted their target price for the stock from GBX 2,060 to GBX 2,120 in a report on Monday, February 2nd. Berenberg Bank restated a “hold” rating and set a GBX 1,850 target price on shares of BAE Systems in a research report on Wednesday, November 12th. Finally, JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of BAE Systems in a research report on Tuesday, October 28th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of GBX 2,021.40.

Insider Transactions at BAE Systems

In other BAE Systems news, insider Ewan Kirk purchased 10,000 shares of BAE Systems stock in a transaction on Friday, December 5th. The shares were bought at an average price of GBX 1,678 per share, with a total value of £167,800. Insiders have purchased a total of 10,015 shares of company stock worth $16,810,420 in the last quarter. 0.14% of the stock is currently owned by company insiders.

About BAE Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems.