Defense & Military
BAE Systems 2025 Results Show 10 Percent Sales Growth and Record Backlog
BAE Systems reports 10% sales growth to £30.7B in 2025, record £83.6B backlog, major export deals, and positive 2026 outlook.

This article is based on an official press release from BAE Systems.
BAE Systems reports record backlog and double-digit growth in 2025 results
BAE Systems announced its full-year financial results for 2025 this week, reporting a 10% increase in sales to £30.7 billion and a record order backlog of £83.6 billion. The company highlighted strong operational performance across all sectors, driven by a “new era of defence spending” and major export agreements.
According to the company’s statement, underlying earnings before interest and tax (EBIT) rose by 12% to £3.32 billion, while underlying earnings per share (EPS) also increased by 12% to 75.2p. The Board recommended a final dividend of 22.8p, bringing the total dividend for 2025 to 36.3p, a 10% increase over the previous year.
In the official release, BAE Systems Group Chief Executive Officer Charles Woodburn commented on the results:
“Our results highlight another year of strong operational and financial performance, thanks to the outstanding dedication of our employees. In a new era of defence spending, driven by escalating security challenges, we’re well positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future.”
Major program milestones and export wins
The company reported a strong orders intake of £36.8 billion for the year. A significant contributor was the UK Government’s agreement with Türkiye to acquire 20 Typhoon aircraft. BAE Systems stated this deal is anticipated to be worth £4.6 billion to the company and will help sustain Typhoon production and approximately 20,000 jobs across the UK.
In the maritime domain, Norway selected the Type 26 frigate for its future warship procurement program. The company noted that this £10 billion Government-to-Government agreement represents the UK’s largest-ever warship export deal by value. Additionally, the company laid the keel for HMS Dreadnought, the first of four new nuclear-deterrent submarines for the Royal Navy, at its Barrow-in-Furness shipyard.
BAE Systems also highlighted progress in the US market. The company secured a $1.2 billion contract to provide the US Space-Agencies with space-based missile tracking capabilities. In the land sector, the Armored Multi-Purpose Vehicle (AMPV) program reached its 500th delivery milestone, with the company executing full-rate production to meet the US Army’s requirement for nearly 3,000 vehicles.
Strategic partnerships and future technologies
The year also saw the launch of “Edgewing,” a joint venture with international industry partners in Italy and Japan for the Global Combat Air Programme (GCAP). According to the press release, Edgewing will be accountable for the design and development of the next-generation combat aircraft. The company also noted the selection of its Malloy T-150 uncrewed air systems by the Royal Navy for logistical support during the Carrier Strike Group 2025 deployment.
2026 financial outlook
Looking ahead, BAE Systems provided guidance for the year ending December 31, 2026. The company expects sales to increase by 7% to 9% and underlying EBIT to grow by 9% to 11%. Underlying EPS is also projected to rise by 9% to 11%. Free cash flow is targeted to exceed £1.3 billion for the year.
The company also updated its three-year cumulative free cash flow guidance. For the period 2026–2028, BAE Systems expects cumulative free cash flow to be in excess of £6.0 billion. The guidance assumes an exchange rate of $1.32:£1, consistent with the actual 2025 rate.
Sources: BAE Systems
Photo Credit: BAE Systems
Defense & Military
Embraer Signs Long-Term KC-390 Support Deal With Brazil
Embraer and the Brazilian Air Force signed a lifecycle support agreement for the KC-390 Millennium fleet on June 18, 2026.

Embraer and the Brazilian Air Force signed a comprehensive long-term logistics support agreement on June 18, 2026, designed to maximize the operational availability and mission readiness of the military’s KC-390 Millennium fleet.
Announced in a press release from the manufacturer’s São José dos Campos headquarters, the contract provides full lifecycle support for current and future KC-390 aircraft operated by the Brazilian Air Force (FAB). The agreement encompasses maintenance, logistical sustainment, component repair and overhaul, spare parts supply, engineering services, and technical publications. The financial value of the contract was not disclosed.
Enhancing fleet readiness for the launch customer
The Brazilian Air Force serves as the launch customer for the KC-390 program. According to Air Data News, the FAB has a total order book of 19 aircraft. The first production unit was delivered to the military branch on September 4, 2019.
Lieutenant-Brigadier Valter Malta, General Support Commander for the FAB, stated in the release that the agreement reinforces the military’s commitment to fleet availability and operational efficiency.
“Through this contract, we will provide the maintenance and logistical sustainment required to support the KC-390 Millennium, which is a strategic asset for the country’s mobility, defense, and rapid response capabilities,” Malta said.
Carlos Naufel, President and CEO of Embraer Services & Support, noted the contract extends a decades-long relationship between the manufacturer and the FAB. Naufel stated the goal is to support the military’s ability to perform at the highest standards using world-class solutions.
Production ramp-up and international momentum
The support agreement coincides with a broader push by Embraer to increase production of the KC-390 Millennium to meet growing international demand. Breaking Defense reported that Embraer executives briefed reporters on June 10, 2026, outlining plans to build six aircraft in 2026 and reach an annual production rate of 10 aircraft by the end of the decade.
Marcio Monteiro, Chief Marketing Officer of Embraer’s defense division, told Breaking Defense that the company is in “ramping up mode” to meet current commitments and anticipate future orders. Embraer estimates a total addressable market of 450 aircraft for the KC-390 over the next two decades.
International interest in the platform has accelerated in recent months. Air Data News reported that Greece formally submitted a defense procurement package to its parliament in June 2026 for three KC-390s. Embraer is also preparing to deliver the first aircraft to the Czech Air Force in the coming weeks, with a second scheduled for 2027. Additional deliveries are slated for Uzbekistan and South Korea in 2026.
AirPro News analysis
Securing a comprehensive, long-term sustainment contract with the launch customer is a critical step for Embraer as it markets the KC-390 Millennium globally. Prospective international buyers closely monitor the operational availability and logistical support network of the home country’s fleet when evaluating military aircraft transport acquisitions. By formalizing this lifecycle support structure with the Brazilian Air-Forces, we view Embraer as establishing a baseline sustainment model that can be pitched to European and Asian air forces currently evaluating alternatives to legacy tactical airlifters.
Sources: Embraer
Photo Credit: Embraer
Defense & Military
Shield AI Wins U.S. Air Force CCA Autonomy Contract
The U.S. Air Force awarded Shield AI a production contract to integrate Hivemind software into its Collaborative Combat Aircraft program.

On June 17, 2026, the U.S. Air-Forces awarded defense technology company Shield AI a production contract to integrate its Hivemind mission autonomy software into the Collaborative Combat Aircraft (CCA) program. The award advances the military branch’s strategy to decouple software development from airframe manufacturing, enabling rapid capability updates across multiple uncrewed platforms.
In a press release issued on June 17, 2026, Shield AI confirmed the contract will utilize the government-owned Autonomy Government Reference Architecture (A-GRA). This framework allows the Air Force to evaluate and integrate mission autonomy as a standalone capability, preserving vendor competition and reducing the integration risks traditionally associated with tied hardware and software procurement.
Advancing the Collaborative Combat Aircraft fleet
The CCA program is a core component of the Air Force’s Next-Generation Air Dominance (NGAD) family of systems. These uncrewed aircraft are designed to fly alongside fifth- and sixth-generation fighter jets, augmenting the crewed fleet with additional offensive strike and intelligence-gathering capabilities.
According to reporting by DefenseScoop, the Air Force plans to field a minimum of 150 CCA systems by the end of the decade. The Increment 1 airframe production Contracts were awarded to General Atomics Aeronautical Systems and Anduril Industries four months ahead of schedule.
Software-first approach to mission autonomy
Alongside the airframe awards, the Air Force issued mission autonomy Software production options to Shield AI, Anduril, and Collins Aerospace. The military branch has been integrating and testing mission autonomy packages on CCA prototypes since February 12, 2026.
“Mission autonomy is a foundational capability for future airpower. The Air Force’s approach enables faster innovation, rapid capability deployment, and greater operational advantage for the warfighter,” said Christian Gutierrez, Senior Vice President of Hivemind at Shield AI.
Col. Timothy Helfrich, Program Acquisition Executive for Fighters and Advanced Aircraft for the U.S. Air Force, described the program as the next evolution of air power. Speaking to DefenseScoop, he noted that the CCA initiative represents the military’s first instance of taking human-machine teaming into the aviation world to such an extent and driving it operationally.
Future milestones and vendor selection
The Air Force is expected to select a primary mission autonomy software provider for CCA Increment 1 in 2027. This decision will follow extensive evaluation of the software packages provided by the competing vendors.
The A-GRA architecture ensures that whichever software is selected can be integrated into the YFQ-42A built by General Atomics and the YFQ-44A built by Anduril without requiring structural modifications to the aircraft.
AirPro News analysis
We view the Air Force’s strict adherence to the Autonomy Government Reference Architecture as a fundamental shift in defense aviation procurement. By forcing a hard boundary between the physical aircraft and the cognitive software that flies it, the military is actively avoiding the vendor lock-in that has historically plagued major acquisition programs. The decision to award software production options to three distinct companies, including traditional defense contractors like Collins Aerospace alongside newer entrants like Shield AI and Anduril, indicates a deliberate strategy to maintain competitive pressure through the 2027 down-select. If successful, this decoupled procurement model could become the standard for future uncrewed aviation programs.
Sources: Shield AI
Photo Credit: Shield AI
Defense & Military
Daher Expands Rafale Aerostructure Role for Dassault Aviation
Daher takes on Rafale canards, vertical tail plane, and forward fuselage assembly as Dassault targets four aircraft per month by 2028-29.

Daher Group has expanded its manufacturing responsibilities within the Dassault Rafale fighter program, taking on the production of critical composite and metallic aerostructures to support Dassault Aviation as it accelerates aircraft output.
In a press release issued on June 16, 2026, during the Eurosatory defense and security show in Paris, Daher detailed its growing portfolio of flight safety-critical components for the multirole fighter. The strategic industrial transfer is designed to alleviate production bottlenecks as Dassault works through a backlog of more than 220 aircraft for French and export customers.
Strategic industrial transfers support production targets
Dassault Aviation is currently executing a significant production ramp-up. According to recent reporting by Aviation Week, the manufacturer plans to deliver 28 Rafale aircraft in 2026, an increase from 26 deliveries in 2025. The company ultimately targets a production rate of four aircraft per month by 2028 or 2029.
To facilitate this volume, Dassault transferred the manufacturing of the Rafale’s canards and vertical tail plane from its own facility in Biarritz, France, to Daher.
“Daher’s work on the Rafale demonstrates our ability to industrialize and assemble critical components in highly demanding environments, while supporting the program’s production ramp-up,” said Alain-Jory Barthe, CEO of Daher Industry. “Our adherence to delivery schedules and the quality of our production are recognized by Dassault Aviation, with whom we’ve built a long-term relationship of trust based on a shared industrial DNA as family-owned companies.”
Critical aerostructure manufacturing and assembly
Daher’s expanded work package encompasses both composite manufacturing and complex metallic assembly. The company confirmed that the thermoset composite canards have already passed their qualification milestones. The vertical tail plane is currently entering its final validation phase.
In addition to the flight control surfaces, Daher is responsible for assembling the C1-C7 forward fuselage section. Located immediately aft of the nose, this section incorporates the structural support for the aircraft’s in-flight refueling probe. The assembly process involves integrating approximately 800 elementary parts, which are primarily metallic and sheet metal components.
The Tier 1 supplier also produces equipped T34 panels and the radio access hatch specifically designed for the two-seat variant of the Rafale.
AirPro News analysis
We view Dassault’s delegation of major structural assemblies to Daher as a textbook supply chain optimization strategy for an original equipment manufacturer facing a steep production curve. By offloading the canards and vertical tail plane, Dassault frees up floor space and specialized labor at its Biarritz plant for other critical path items. Daher is well-positioned to absorb this work. With 14,500 employees globally and reported 2025 revenues of €1.9 billion, the company has the industrial scale required to meet defense-standard quality requirements while maintaining the strict delivery schedules necessary for Dassault to reach a rate of four aircraft per month.
Sources: Daher
Photo Credit: Daher
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