EarningsQ2 2026 Earnings Report
MX:BA1N Q2 2026 EPS Results
Actual EPS$8.97
Consensus EPS$8.46
Beat/MissBeat by +$0.51
One Year Ago EPS$8.00
MX:BA1N Q2 2026 Revenue Results
Actual Revenue$336.89B
Expected Revenue$361.78B
Beat/MissMissed by -$24.89B
YoY Revenue Growth+7.69%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:BA1N Upcoming Earnings
BAE Systems's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:BA1N Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive operational and financial picture: double-digit profit and EPS growth, record order intake and backlog, substantial cash generation and upgraded full-year guidance. Strategic investments (MBDA capacity uplift, US munitions and space ramp, production expansions in Hägglunds/Bofors) and a large pipeline underpin long-term visibility. Key negatives are concentrated in maritime (first-in-class margin pressure), timing uncertainty around customer advances and execution/competitive risks in fast-moving markets. On balance, the upbeat financial momentum, record backlog and upgraded guidance substantially outweigh the headwinds.Company Guidance
Strong H1 Financial Performance
Sales grew 9% (constant currency), EBIT increased 11%, and earnings per share rose 13% versus H1 2025. Return on sales improved 20 basis points to 10.8%.
Robust Cash Generation and Balance Sheet
Free cash flow was GBP 1.8 billion in H1; operating cash flow GBP 2.1 billion with net customer advances of GBP 1.6 billion. Net debt fell to GBP 3.2 billion and management expects full-year free cash flow to exceed GBP 2.0 billion.
Upgraded Full-Year Guidance
Guidance upgraded: sales growth 8%–10% (up 100 bps), EBIT growth 10%–12% (up 100 bps), EPS growth 11%–13% (up 200 bps). '24–'26 cash target upgraded by GBP 700 million; now expected to exceed GBP 6.7 billion.
Record Order Intake and Backlog
Order intake of GBP 16.4 billion in H1 (including major items: GBP 2.5bn Typhoon support for Türkiye, GBP 2.1bn MBDA, GBP 1bn F‑35, GBP 1.6bn SMS). Group backlog reached a record GBP 84 billion; combined order backlog and pipeline/positions cited at ~GBP 260 billion (~8x annual sales).
Europe and MBDA Momentum
Sales in Europe rose 30% in H1 and Europe represents 33% of backlog vs 13% of sales. MBDA secured EUR 6.5 billion of new orders in H1 (~>2x its H1 revenue) and backlog increased to EUR 48 billion (~8x annual revenue). MBDA plans EUR 5 billion investment for 2026–2030 to expand capacity and digitalization.
U.S. Market Alignment and Munitions Opportunity
U.S. business showing strong demand: Space & Mission Systems sales grew ~30% in H1. Company supports 10 of 12 priority munitions programs, signed multiple framework agreements and expects multibillion-dollar multiyear production ramps (e.g., THAAD seeker procurement representing a ~4x increase). U.S. CapEx for the business expected to rise ~40% year-over-year to accelerate munitions production.
Production Capacity Expansions in Platform Businesses
Hägglunds (CV90/BvS10) investments aim for ~400% production increase; Bofors production rates expanded 3–4x across several product areas. Additional capital approvals (e.g., USD 0.25bn for ES projects) and ongoing facility acquisitions support capacity growth.
Strategic Positioning and Long-Term Visibility
Large, long-duration programs (combat air, submarines, frigates, space systems) provide multi-decade visibility. Management highlights a GBP 180 billion pipeline of opportunities (including F‑35 support, Typhoon, SSN‑AUKUS, GCAP, Dreadnought) and expects GCAP/Edgewing revenues to be well over $1 billion in 2026.
MX:BA1N Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed