BAE Raises 2026 Cash-Flow Guidance 50% to £3B

BAE Systems raised its 2026 free cash flow forecast to about £3 billion from more than £2 billion, citing strong trading and customer advances as governments increase defense spending. The company maintained its projections for sales growth of 8% to 10%, underlying operating profit growth of 10% to 12%, and earnings-per-share growth of 11% to 13%. Orders reached £33 billion so far this year, with major awards including funding for U.K. nuclear submarines and the Global Combat Air Programme; BAE expects further agreements before year-end. Strength in Electronic Systems, Air, and Platforms & Services offset more subdued growth and margins in Maritime, where analysts said a recovery may take time.