Income statement for the year ended 31 December
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Re-presented1 | |||||
| £m | £m | £m | £m | £m | |
| Continuing operations | |||||
| Sales2 | |||||
| Electronic Systems | 7,528 | 7,189 | 5,458 | 5,057 | 4,491 |
| Platforms & Services | 5,039 | 4,390 | 3,922 | 3,688 | 3,395 |
| Air | 9,299 | 8,519 | 8,058 | 7,698 | 7,449 |
| Maritime | 6,797 | 6,187 | 5,536 | 4,598 | 4,169 |
| Cyber & Intelligence | 2,397 | 2,411 | 2,321 | 2,205 | 1,923 |
| HQ | 232 | 203 | 471 | 420 | 281 |
| Intra-group sales | (630) | (564) | (482) | (410) | (398) |
| 30,662 | 28,335 | 25,284 | 23,256 | 21,310 | |
| Underlying EBIT3 | |||||
| Electronic Systems | 1,162 | 1,071 | 878 | 838 | 766 |
| Platforms & Services | 576 | 448 | 354 | 326 | 259 |
| Air | 1,108 | 1,007 | 949 | 849 | 772 |
| Maritime | 457 | 474 | 425 | 356 | 351 |
| Cyber & Intelligence | 223 | 199 | 199 | 232 | 179 |
| HQ | (204) | (184) | (123) | (122) | (122) |
| 3,322 | 3,015 | 2,682 | 2,479 | 2,205 | |
| Adjusting Items4 | |||||
| Net gain related to plan amendments/settlements on pension schemes | 51 | 13 | 60 | - | - |
| Net profit on business transactions | 12 | 94 | - | 94 | 158 |
| Profit on sale of investment property | - | - | - | - | 182 |
| Acquisition-related (costs)/income | (22) | (72) | (20) | (16) | 10 |
| Other | (1) | (12) | - | - | - |
| EBIT3 | 3,362 | 3,038 | 2,722 | 2,557 | 2,555 |
| Amortisation of programme, customer-related and other intangible assets, and impairment of equity accounted investments and intangible assets | (414) | (344) | (116) | (111) | (101) |
| Finance and tax expense of equity accounted investments | (23) | (9) | (33) | (75) | (65) |
| Operating profit | 2,925 | 2,685 | 2,573 | 2,371 | 2,389 |
| Net finance costs | (353) | (353) | (247) | (395) | (279) |
| Profit before taxation | 2,572 | 2,332 | 2,326 | 1,976 | 2,110 |
| Tax expense | (421) | (291) | (386) | (315) | (198) |
| Profit for the year | 2,151 | 2,041 | 1,940 | 1,661 | 1,912 |
Balance sheet as at 31 December
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| £m | £m | £m | £m | £m | |
| Goodwill | 12,732 | 13,297 | 11,386 | 11,819 | 10,910 |
| Other Intangible Assets | 2,513 | 2,965 | 713 | 825 | 806 |
| Property, plant and equipment, right-of-use assets and investment property5 | 6,835 | 6,636 | 5,003 | 4,723 | 4,010 |
| Equity accounted investments and other investments | 822 | 906 | 916 | 886 | 630 |
| Working capital | (6,499) | (6,386) | (5,468) | (4,119) | (3,740) |
| Lease liabilities net of finance lease receivables | (1,742) | (1,817) | (1,396) | (1,582) | (1,252) |
| Net other financial assets and liabilities | (9) | (69) | (112) | (138) | (1) |
| Group's share of the post-employment benefits surplus/(deficit) | 844 | 768 | 229 | 646 | (2,124) |
| Net tax assets and liabilities | 285 | 422 | 474 | 363 | 589 |
| Net debt (excluding lease liabilities) | (3,844) | (4,945) | (1,022) | (2,023) | (2,160) |
| Net Assets | 11,937 | 11,777 | 10,723 | 11,400 | 7,668 |
| Non-controlling interests | (153) | (161) | (164) | (185) | (232) |
| Total equity attributable to equity holders of BAE Systems plc | 11,784 | 11,616 | 10,559 | 11,215 | 7,436 |
Movement in net debt for the year ended 31 December
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| £m | £m | £m | £m | £m | |
| Net cash flow from operating activities | 3,432 | 3,925 | 3,760 | 2,839 | 2,447 |
| Deduct: Net capital expenditure6 | (959) | (987) | (789) | (519) | (209) |
| Deduct: Principal element of lease payment and receipts | (181) | (178) | (282) | (227) | (207) |
| Add back: Dividends received from equity accounted investments | 299 | 158 | 134 | 94 | 57 |
| Add back: Tax paid net of R&D expenditure credits received | 196 | 175 | 395 | 365 | 234 |
| Operating business cash flow | 2,787 | 3,093 | 3,218 | 2,552 | 2,322 |
| Deduct: Tax paid net of R&D expenditure credits received | (196) | (175) | (395) | (365) | (234) |
| Deduct: Net interest paid | (433) | (413) | (230) | (237) | (224) |
| Free Cash Flow7 | 2,158 | 2,505 | 2,593 | 1,950 | 1,864 |
| Acquisitions and disposals | 34 | (4,582) | (22) | (38) | 213 |
| Dividends paid (including those paid to non-controlling interests) | (1,113) | (1,026) | (945) | (968) | (979) |
| Purchase of own shares | (502) | (555) | (561) | (788) | (368) |
| Other movements (including foreign exchange)8 | 524 | (265) | (64) | (19) | (172) |
| Net decrease/(increase) in net debt | 1,101 | (3,923) | 1,001 | 137 | 558 |
| Opening net debt | (4,945) | (1,022) | (2,023) | (2,160) | (2,718) |
| Closing net debt | (3,844) | (4,945) | (1,022) | (2,023) | (2,160) |
Other information
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Continuing operations | |||||
| Basic earnings per share - total (pence) | 68.8 | 64.9 | >61.3 | 51.1 | 55.2 |
| Basic earnings per share - underlying9 (pence) excluding one-off tax benefit (derived from EBIT) | 75.2 | 68.5 | 63.2 | 55.5 | 47.8 |
| Basic earnings per share - underlying9 (pence) including one-off tax benefit (derived from EBIT) | 75.2 | 68.5 | 63.2 | 55.5 | 50.7 |
| Order backlog10 including the Group's share of equity accounted investments (£bn) | 83.6 | 77.8 | 69.8 | 58.9 | 44.0 |
| Dividend per ordinary share (pence) | 36.3 | 33.0 | 30.0 | 27.0 | 25.1 |
| Number of employees, excluding share of employees of equity accounted investments, at year end | 104,000 | 100,000 | 92,000 | 84,000 | 82,000 |
| Capital expenditure including leased assets11 (£m) | 1,171 | 1,200 | 1,100 | 780 | 697 |
- With effect from 2022, the Group established a new Digital Intelligence business, bringing together our non-US digital and data capabilities to further strengthen how we deliver these services and capabilities for our customers. The new Digital Intelligence business is reported within the Cyber & Intelligence segment. In addition, our BAE Systems Australia business transitioned from the Air segment to the Maritime segment. Comparative segmental financial information for 2021 has been re-presented to reflect the new business structure.
- Revenue plus the Group's share of revenue of equity accounted investments, excluding subsidiaries' revenue from equity accounted investments.
- Operating profit excluding amortisation of programme, customer-related and other intangible assets, impairment of equity accounted investments and intangible assets, net finance costs and tax expense of equity accounted investments (EBIT) and adjusting items.
- Adjusting items are items of financial performance which have been determined by management as being material by their size or incidence and not relevant to an understanding of the Group's underlying business performance and includes: profit or loss on business transactions, costs incurred which are one-off in nature - for example non-routine costs or income relating to post-retirement benefit schemes, the impact of substantively enacted tax rate changes, and other items which management has determined as not being relevant in understanding of the Group's underlying business performance.
- Includes assets funded by the UK Government for property, plant and equipment at Barrow-in-Furness, UK.
- Includes net expenditure on property, plant and equipment (net of proceeds from funding of assets), investment property, intangible assets, other investments, and equity accounted investment funding.
- Net cash flow from operating activities, including dividends received from equity accounted investments, interest paid, net of interest received, net capital expenditure and financial investments, and principal elements of lease payments and receipts.
- Includes cash flows from matured derivative financial instruments, foreign exchange, cash collateral and other non-cash movements.
- Profit for the year attributable to shareholders, excluding post-tax impact of amortisation of programme, customer-related and other intangible assets, impairment of equity accounted investments and intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items attributable to shareholders, being underlying earnings, divided by number of shares as defined for Basic earnings per share in accordance with IAS 33 Earnings per Share.
- Funded and unfunded unexecuted customer orders including the Group's share of order backlog of equity accounted investments. Unfunded orders include the elements of US multi-year contracts for which funding has not been authorised by the customer.
- Cash expenditure on the purchase of; property, plant and equipment, investment property, other investments, intangible assets, and equity accounted investment funding plus the principal element of finance lease payments net of funding received from the UK government relating to property, plant and equipment in Barrow-in-Furness, UK.
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